Despite maintaining a solid economy through the pandemic so far, Denmark is tightening the screws in wake of its corona splurge – 80 billion kroner spent on corona-related initiatives this year alone.
Yesterday, the government revealed a 2022 Budget Agreement that focuses on core welfare, the green transition and a balanced economy.
“When Denmark was hit by the corona crisis, the government didn’t hesitate from pumping billions into the economy to foster security for Danish workers and companies,” said the finance minister, Nicolai Wammen.
“Now the Danish economy is back in scintillating form and a more stringent finance policy is required for 2022.”
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Some key elements of the agreement are:
– One billion kroner set aside to boost the health sector over the winter.
– 11.3 million kroner in 2022 and 11.8 million kroner in 2023 has been earmarked for reducing the backlog of health personnel applications from abroad.
– 100 million kroner will be set aside in 2022 – and then 110 (2023), 115 (2024) and 150 (2025) – will be set aside to boost conditions before, during and after birth. The rights of mothers and more midwives will also be improved.
– 102.2 million kroner will be earmarked for free dental care for 18 to 21-year-olds in 2022. That figure will increase to 234.2 million in 2023, 323 million in 2024 and 413 million in 2025. Currently, dental care is only free up until the age of 18.
– A digital solution that will make it easier to choose a dentist and compare prices of dentists
– A ceiling of 26 children in classes in grades 0-2.
– Children who are not ready to enter the school system can have the opportunity to spend an additional year in kindergarten before making the transition. A decision will be made by the parents in collaboration with the kindergarten staff and the municipality.
– The popular håndværkerfradraget tax deduction (officially called boligjobordningen), which allows for deductions for certain home improvements and services, will be axed as of 1 January 2022. Certain services, such as cleaning and childcare, will still be tax deductible.
– About 1.3 billion kroner has been set aside for green initiatives to help Denmark reduce its greenhouse gas emissions by half a million tonnes.
– Denmark sustainable energy portfolio will be improved by 2 GW (energy consumption equivalent of 2 million homes) of offshore wind looking ahead to 2030.
– An energy island on Bornholm and two new marine nature national parks in Øresund and Lillebælt to be established.
– A drinking water foundation to be established in a bid to protect drinking water wells.
– Elementary education will be boosted by an additional 65 million kroner in 2022 and 125 million kroner annually from 2023 and ahead.
– 40 million kroner in 2022 and 70 million kroner from 2023 onwards will be set aside to improve public support and aid for those with disabilities.
– 125 million kroner has been earmarked to the elderly care sector every year from 2022-25.
