Aug 30, 2021

Danish Government Presents 2022 Budget Proposal

Photo by Morten Fauerby

On August 30, Finance Minister Nicolai Wammen presented the key elements in the government’s 2022 budget proposal. The proposal will be negotiated during the Fall (October) and must be voted through before December 31st, 2021 by a majority of the Danish Parliament.

The government’s proposal is focused on avoiding overheating the budget, as opposed to last year’s budget where the focus was on economic recovery following the pandemic. During the press conference, Minister Wammen underlined that the government has budgeted a financial deficit of 0,2 percent of Danish GDP in 2022.

A few key points of the 2022 budget proposals are:

  • ‘Corona War Chest’: The government will continue with a ‘Corona Finance Reserve’ to tackle unforeseen expenses in connection with covid-19 (DKK 4 bn. in 2022.
  • A better-connected Denmark: The government proposes to allocate DKK 430 mio. in 2022, DKK 510 mio. in 2023 and DKK 545 mio. annually in 2024 and 2025 to initiatives to support a better-connected country. This allocated frame is going to finance the government’s two proposals about education and green cities in every part of the country.
  • The probation service: The government is inviting the political parties in the parliament to negotiations regarding the probation service budget for 2022-2025. The government has earmarked DKK 240 mio. in 2022 rising to DKK 440 mio. in 2025 to support the negotiations and improve the physical frames, work environment as well as the retention and recruitment of uniformed staff.
  • Recruitment to the Danish labor market: The government proposes to spend DKK 35 mio. annually in 2022 and 2023 to strengthen the recruitment opportunities on the labor market.
  • Tax authorities: continued prioritization of the tax authorities (DKK 230 mio. in 2022)
  • National strategy for cyber- and information security: DKK 270 mio. in 2022-2024)
  • Screening of foreign investments: DKK 55 mio. in 2022-2025
  • Strengthening Danish health authorities: DKK 90 mio. in 2022-2024
  • The Danish Foreign Service: DKK 557 mio. in 2022-2025
  • Negotiation Reserve: The government sets aside DKK 1,2 bn. annually (2022-2024) for budget negotiations. These funds are aimed at financing welfare and green initiatives.

In addition, the government has annulled last year’s increase of the deduction for using craftsmen, the so-called “håndværkerfradrag”.

Sources: regeringen.dk, Altinget, tv2.dk