The latest figures from the Ministry of Finance reveal that expenses for state administration have increased by 11.2 billion Danish kroner from 2017 to 2023. This increase almost matches the municipal service expenses, which have also grown by 11.7 billion in the same period. These figures were published in a response from the Ministry of Finance to the Danish Parliament and have garnered significant attention. Martin Damm, who is the mayor for the Venstre party in Kalundborg and the chairman of the Danish Association of Municipalities (KL), has expressed sharp criticism of the growing state administration. “It is outrageous. Someone simply must stop it. Someone in this country needs to take the lead in addressing it. No one has been elected on the promise of spending so much money on administration,” he told Berlingske.
According to Berlingske, however, KL did not include the extra billions allocated to the regions and healthcare system in the same period in their calculations. This has created some controversy surrounding KL’s portrayal of the situation. In its government platform for SPM, the government has imposed a three billion Danish kroner reduction in administrative expenses for municipalities and regions over the next four years. This comes at a time when there has been a significant increase in the number of administrative staff in several ministerial areas. The Prime Minister’s Office, the Ministry of Business, and the Ministry of Interior and Health have seen increases of 36, 55, and 58 percent, respectively. Finance Minister Nicolai Wammen (S) has acknowledged in a written comment to Ritzau that the state also needs to introduce savings on administration. “In other words, we will be taking our own medicine so that we can spend more money directly on citizens rather than on unnecessary rules and administration,” he said.
These revelations come just before KL begins negotiations with the government on next year’s budget for welfare areas such as schools, elderly care, and daycare centers, which are operated by the country’s 98 municipalities.