Government and municipalities ink 2020 budget agreement – The Post

Government and municipalities ink 2020 budget agreement

Local authorities get additional 2.2 billion kroner next year for welfare

The finance minister, Nicolai Wammen, on his way to reveal the deal today (photo: Finance Ministry)
September 6th, 2019 1:00 pm| by Christian W

Municipalities will have an additional 2.2 billion kroner at their disposal in 2020 following a budget agreement today between the government and local government association, Kommunernes Landsforening (KL).

Furthermore, the two sides also agreed to scrap the municipal modernisation and streamlining program, which was ushered in by the previous government and that cut 500 million kroner from municipal coffers every year.

“The agreement today brings security to welfare in the municipalities. We ensure that the funding is there now that we are fortunate enough to have more children and elderly,” said finance minister, Nicolai Wammen.

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More pedagogues on the way
Another key aspect of the deal is laying out a foundation for the government’s forthcoming children’s plan, which involves establishing minimum limits on daycare institutions looking ahead to 2025.

 The entire agreement can be read here (in Danish), but the key elements of can be seen below.

Main points of agreement:


– Expanding the municipal service framework by 2.2 billion kroner in 2020 and setting up a new welfare prioritising pool with 500 million kroner to better provide resources to welfare at the municipal level.

– The former government’s planned scaling down of municipal expenses by 0.5 billion kroner annually is scrapped.

– Municipal construction funding is increased to 19.1 billion kroner in 2020 to give municipalities better options to invest in physical frameworks for welfare.

– An extraordinary financing grant of 3.5 billion kroner – 2 billion kroner of which are dispersed based on financial conditions of municipalities.

– KL will enter into a co-operation to prepare the foundation for a children’s plan that will, among other things, focus on establishing minimum limits on daycare institutions looking ahead to 2025.

– A new co-operation concerning specialised social areas focusing on getting adults into work and education, and having better framework for preventative efforts, will be launched.