What is Intergovernmental Revenue?

Intergovernmental revenue is funding received from another government, either in the form of a grant or as reimbursement for costs incurred. The recipients of these funds record them as revenue.

Examples of Intergovernmental Revenue

For example, a state government shares a portion of its highway tax receipts with the county and municipal governments within its boundaries. Or, the federal government issues education-related funding to state governments for further distribution at the local level.