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Defence expenditure 

The total budget amounts to 25.3 billion DKK in 2020 according to the Danish Finance Act for 2020. The appropriations are primarily based on

  • The Danish Defence Agreement 2018-2023 of January 28, 2018, 
  • Supplemental Agreement for the Danish Defence 2018-2023 of January 29, 2019
  • Agreement of new fighter aircraft of June 9, 2016.

The appropriations are distributed among main accounts, activity areas and budget areas (see table 1-3 below).

Table 1 (pdf): Overview of the appropriations 2018-2019 (current prices) and 2020-2023 (based on 2020 prices)

Open pdf: Overview of the appropriations of the Ministry of Defence in the Finance Act 2020 

 
Table 2: Ministry of Defence in the Finance Act 2020 on activity areas

Table 2: Ministry of Defence in the Finance Act 2020 on activity areas

 
Table 3: Appropriations in the Finance Act 2020 of Ministry of Defence distributed into budget areas


Table 3: Appropriations in the Finance Act 2020 of Ministry of Defence distributed into budget areas

For further information of the Danish defence budget refer to the Agency for Modernisation, Ministry of Finance www.modst.dk 
 

NATO definition of the defence expenditures

NATO calculates the Defence expenditures of each member state according to NATO’s own definition. This calculation, which is a part of the Defence Planning Capability Survey, creates the basis for comparison of the Defence expenditures across NATO member states. The NATO definition differs in certain aspects from the Danish definition of the Defence budget. In the NATO definition the following expenditures are fully or partly included: 
 

 

  • Pensions for public servants under the Ministry of Defence 
  • Pension costs according to law on civilian workers 
  • State pension to retirees 
  • Healthcare for present employees 
  • Qualifying civilian education acquired by newly recruited military personnel 
  • VAT 
  • National Survey and Cadastre 
  • Danish Meteorological Institute 
  • Denmark’s financial share of defence related initiatives of the EU 
  • Denmark’s assessed contributions to UN peacekeeping operations

 
Conversely, expenditures for civil defence and certain other strictly civilian expenditures are deducted.

The calculation of the Danish defence expenditures, according to the NATO definition, results in a somewhat higher estimate on the defense expenditures than the national definition (see table 4 below).

A part of the NATO Defence Planning Capability Survey is a calculation of the Defence expenditures as a percentage of the Gross Domestic Product in the member states (see table 5 below). 

Table 4: Danish Defence expenditures according to NATO's definition (current prices)

Million DKK

2013

2014

2015

2016

2017

2018

2019e

23,682

22,769

22,633

24,190

24,961

28,787

30,389



Table 5: Danish Defence expenditures according to NATO's definition as a percentage of GDP (based on 2015 prices)

Percentage

2013

2014

2015

2016

2017

2018

2019e

1.23

1.15

1.11

1.15

1.15

1.30

1,32


e) Based on estimated for 2019.

More information can be found on NATO's homepage.

This article in Danish

Last updated 2020-02-20 - 10:55

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