Government and municipalities agree to new financial framework

Freed-up funds going to welfare, elderly, public school and children

The government and the local council organisation KL have reached an agreement for the municipal financial framework for 2016.

A tight financial framework and an efficient public sector will be the order of the day over the coming years, and the negotiations yielded an annual re-prioritisation contribution from the municipalities of 1 percent over the next four years from 2016-2019.

Following the state’s lead
The freed-up funds will be earmarked for prioritised efforts such as welfare, the elderly, public schools and children.

“We need to keep ensuring that the tax payers’ money is spent where it is needed the most,” said the finance minister, Claus Hjort Frederiksen.

“It’s important that the entire public sector contributes to free up the funds that can be used for prioritised areas such as health, elderly and security. Re-prioritisation has been an implemented principle of the state for many years, and now it’s spreading to the municipalities.”