The government has allocated an additional 500 million Danish kroner to the negotiation reserve in the new budget proposal for 2025, according to information obtained by Jyllands-Posten, a Danish newspaper. This amount is the same as what the government set aside in last year’s budget proposal. However, the reserve grew to almost one billion kroner when the budget was finally approved.
The negotiation reserve is a fund that allows political parties to present their specific requests for the national budget. In the budget negotiations earlier this year, the reserve was historically low at just 200 million kroner. This was primarily due to the fact that the budget for 2023 was negotiated late, as the SVM government (Social Democrats / Moderates / Liberal Alliance) was only formed in December 2022.
In previous years, the negotiation reserve has often been much higher, typically ranging between one and two billion kroner. This indicates a notable difference in the financial flexibility the government offers in various budget negotiations.