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Uwe Blien and Franziska Hirschenauer
''Formula allocation: The regional allocation of budgetary funds for measures of active labour market policy in Germany''
( 2006, Vol. 18 No.7 )
A common problem of regional policy is the distribution of funds to regional units. To follow the specific purpose of this budgeting process in a rational way this is often done in a formula allocation on the basis of official statistics. In Germany, measures of active labour market policy – e.g. training measures, integration subsidies and job creation schemes – are paid from a common budget. For the allocation of these budgetary funds to the regions of the Federal Republic of Germany, a formula was developed which was to be based essentially on a labour market indicator. Here the procedure used in constructing the distribution process is explained and the distribution result for the year 2004 is set out.
Manuscript Received : Oct 20 2006 Manuscript Accepted : Dec 10 2006

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