Nov 07, 2023

Government Announces 2030 Spending Plan – with huge investments in welfare

The day after announcing tax cuts, the government has presented its much-anticipated 2030 Plan. Welfare and military spending are getting a big boost, while previously announced pension-scheme reductions have been scrapped.

The Danish economy is healthy and strong.

The government’s proposals for tax cuts and investment in welfare this week underscore that reality. In the new 2030 plan, the majority government has chosen to dispose all the entire economic margin, the state’s expected economic surplus up to 2030.

It is huge by Danish standards.

Overview of the government’s 2030 plan

The government will spend DKK 32 billion on welfare.

19 billion DKK is to cover the demographic trend, where more elderly people and children are expected to receive welfare benefits in the future.

5 billion DKK must go to health, 3 billion DKK to psychiatry, and just under 1 billion DKK goes to vocational training.

The government will allocate an additional 4.9 billion DKK to the Armed Forces.

The money must ensure that Denmark permanently meets the defense alliance NATO’s goal that a member state spends 2 percent of its gross domestic product (GNP) on defense.

As it is now, money has only been set aside for Denmark to meet the 2 percent target in 2023 and 2024.

More money for Ukraine
More money is set aside for the Ukraine Fund, which is a multibillion-dollar fund that was presented by a broad majority of the parties in Folketinget earlier this year.

According to the 2030 plan, an additional 23.5 billion DKK must be added to the Ukraine Fund.

“Arne plus” pension scheme scrapped
The pension scheme with the name “Arne-plus” is off the table. Originally, the three government parties had agreed on a new pension scheme. That idea is now withdrawn.

With the announcement, the senior pension and the “Arne pension” will continue as before.

First reactions to the government’s plan are positive.

The government’s announcement of a welfare boost of 32 billion DKK is really good news for the members of 3F. It is a completely new political direction and the biggest political priority for welfare for many, many years,” says the chairman of Denmark’s largest trade union 3F, Henning Overgaard.