only vertical transfers are taken into account ie transfers from higher to lower levels of government or vice versa an exception is made for germany and switzerland where horizontal equalisation systems are in place which are therefore added the tax side is captured by general government revenue from personal taxes in per cent of gdp as well as by an index measuring the progressivity of household taxes the kakwani index it is for instance possible that a share of regional transfers received by an scg is passed on to individuals in the form of cash benefits in this case it would count towards both regional redistribution and individual redistribution making the overall expenditure seem much larger when compared with other countries where the two transfer systems do not overlap for this reason a consolidation across systems was carried out