Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697749570113.pdf (Georgia)
MOF decree N904 30.12.2009 1.
The formula of the equalization transfer: Equalization transfer calculates according to the formula approved by the Budget Code of Georgia Where, T=E-R, T_ Equalization transfer for the local Self-government entities’ budget E_ The sum of the local self-government budget expenditure and the acquisition of non-financial assets (for the self-government cities E expressed as Ecity and for the municipalities as Em) R_ The local self-government budget revenues (except for grants) which is calculated for the each self- government budget according the tendency of the actual indicators for the current and last 3 years.
The equalization transfer is not allocated to the budget of the local self-government entity if budget revenues (except for grants) exceed the sum of the expenditures and the acquision of non-financial assets.

2.
The sum of the local self-government budget expenditure and the acquisition of non- financial assets The sum of the local self-government budget expenditure and the acquisition of non-financial assets is calculated by the following formula: For the local self-government cities: Ecity=Scity*Gcity% For the municipalities: Em=Sm*Gm% Where, Ecity= the sum of the Local self-government budget expenditure and the acquisition of non-financial assets; Em_ the sum of budget expenditure and the acquisition of non-financial assets of municipalities; Scity _ the share of the local self-government statistic and equalization coefficients in the total volume coefficient; Sm_ the share of statistic and equalization coefficients in the total volume of coefficient of municipalities; G _ the sum of the Gm and Gcity is the total volume of the local self-government budget expenditure and the acquisition of non-financial assets, which is determined by the administrative act of the Minister of Finance of Georgia; Gcity – the total volume of the self-government cities’ budget expenditure and the acquisition of non- financial assets are determined the 66 % of the total amount of budget expenditure and the acquisition of non-financial assets of local self-government entities; Gm_ the total volume of budget expenditure and the acquisition of non-financial assets of municipalities are determined the 34% of the total amount of budget expenditure and the acquisition of non-financial assets of local self-government entities.
3.
Calculation of the equalization and statistical coefficients (S) of the local self- government entities S_ Scity and SM is calculated by the following formula: Scity =Kcity / Ktcity % SM= Km / Ktm % Kcity _ the multiplied value of average equalization and statistical coefficients of the specific self- government cities; Ktcity - the sum the multiplied value of average equalization and statistical coefficients (Kcity-s) of the self-government cities; Km _ the multiplied value of average equalization and statistical coefficients of the municipalities; Ktm - The sum of the multiplied value of average equalization and statistical coefficients (Km –s) of the municipalities; 4.
Calculation of the multiplied value of average statistic and equalization coefficients (K) of the local self-government entities K _ Kcity and Km is calculated by the following formula Kcity = Acity * ECcity Km = Am * ECm A _ Acity and AM is the average value of statistic coefficients of the specific self-government cities/municipalities; EC _ ECcity and ECM is the equalization coefficient of the specific self-government cities/ municipalities.

5.
Calculation of the value of average statistic coefficients of the specific self-government cities/ municipalities (A) A _Acity and Am is the average of the P1, P2, P3, P4, P5 and P6 coefficients, where P= Statistic coefficient, it is the ratio of statistic or/and the population density coefficient of specific self-government entity to the relevant sum of this coefficient (for the municipalities – the sum of relevant data of municipalities and for the self-government entities – the sum of relevant data of self-government entities).
A _Acity and Am is calculated by the following formula: A=(∑Pn)/n n _ is the number of P P_ Pcity and Pm represent the statistic coefficient which is calculated by the following formula: Pcity =Ccity/CTcity% Pm =Cm/CTm% Where, Ccity_ is statistic or/and the population density coefficient of the specific self-government entity; CTcity_ is the sum of the relevant statistic or/and the population density coefficient of the self- government cities; Cm_ is the statistic or/and the population density coefficient of the specific municipalities; CTm_ is the sum of relevant statistic or/and the population density coefficient of the specific municipalities.
Population density coefficient (Cd) is the ratio of the number of population (in thousands) to the area (in km2) of the specific self-government entity; C1, C2, C3, C4, C5, Cd are consistent with the following statistic data and the coefficient:  The number of population;  The number of population with the social and-economic status indicator (rating point) less than threshold value established by the government of Georgia;  The number of children under 6 years of age;  The number of adolescents from 6 up to 18 years of age;  The length of the local roads;  The coefficient of population density.
6.

Calculation of the equalization coefficient (EC) EC_ is the equalization coefficient and it is calculated by the following formula: EC= ST+ES ST_ Status coefficient ES - equalization scores.

7.

Calculation of the status coefficient (ST) Status coefficient ST is the sum of the status of self-government entity, the capital, mountainous regions and municipalities, where the regional administration is located.
ST=SU+SCC+SHM+SM Where, SU-the status of the local self-government entity and is determined as amount of 1.0; SCC_ is the status of the capital and it is determined as amount of 2.8 for the Tbilisi and Batumi; SHM_ is the alpine region status, which is determined as amount of 0.1 and is assigned to the local self- government entity in which at least 10 settlements are assigned according to the law - "Socio-economic and cultural development of mountainous regions"; SM –is the status of municipality, where the regional administration is located, and determined as amount of 0.1; 8.
Calculation of the equalization scores (ES) The equalization score is calculated by the following formula: AE _ AEm and AEcity _ The average equalize, which is calculated by the following formula: ES=AE+ESR AEcity=Aacity/ Acity%/CC AEm=Aam/ Am%/CC Aa _ Aam and AEacity_ is the average of A, Aam is the average of the municipalities - Am and Aacity is the average of self-government cities - Acity.

CC_ is the correcting coefficient and determined as amount of 1000.
ESR_ is the equalization score considering the value of income and it is calculated by the following formula: ESR=SC1+ SC2+ SC3 SC1, SC2 and SC3 are support coefficients and they determine as the following amount: SC1 – 0.015; SC2 – 0.010; SC3 – 0.005; The equalization scores (SC1, SC2 and SC3) are given to the following rule: In the first stage, the calculation of each local budget revenues (except for grants) forecast per capita (RPC), which is calculated by the ratio of the own revenue (excluding grants) forecast (R) of the local self-government entities to the number of people living within the border of the local self-government entity.
RPC- is calculated based on RPCam, RPCac and RPCacity indicators: RPCam_ average rate of RPC of all municipalities; RPCac_ average rate of RPC of all self-government entities ; RPCacity_ average rate of RPC-'sof all self-government entities.

In the second stage, the subtraction of RPC–and RPCam, RPCac and RPCacity of the each self- government entity is calculated.

If the RPC is less than RPCam of the self-government entity , in this case support coefficient SC1 will be given to the self-government entity.
; If the RPC is less than RPCac of the self- government entity , but it is more than RPCam, in this case support coefficient - SC2 will be given the self- government entity ; If the RPC is less than RPCacity of the self- government entity , but it is more than RPCac, in this case the support coefficient SC3 will be given to the self- government entity ; If RPC is more than RPCacity of the self-government entity support coefficient will not be given the self- government entity; If RPC of any of the self-government entity is absolutely coincide any of these indicators: RPCam, RPCac or RPCacity, in this case the self-government entity will be given the support coefficient which is more.
9.

Revenue calculation The calculations of revenue (R) of the local self-government entity only the local self-government unit's own revenues (except for grants) are taking into account.

The revenue of each local self-government entity is calculated according to the tendency of the current and last 3 years.

For the calculation of the revenues we use the function of EXCEL- "TREND"