The regions budget and finances

​The Capital Region of Denmark may not collect taxes. Regional expenditure is financed through contributions from the state and the municipalities


Every year in September, as the governing political body of the Capital Region of Denmark, the Regional Council adopts a budget for the next three years for the Capital Region of Denmark.


According to the budget, regional expenditure is financed through contributions from the state and the municipalities. Unlike before the structural reform, the Capital Region of Denmark may not collect taxes.

The tasks and financing of the Capital Region of Denmark are divided into three areas​

The regional budget planning is based on a balance principle where the total finances are divided into three separate areas:

  • Health
  • Social and special needs teaching
  • Regional development

Priorities can be set within each of these three areas, but not across the areas. There is an expectation expenditure and financing will balance. Administrative expenditure is allocated to the individual areas.

The budget is based on policies, strategies and action plans as well as input from the hospitals and cross-disciplinary enterprises of the region and the budget forms the overall framework for all activities within the three separated fields of the region.

Subsidies and municipal joint financing​​

State financing for the health sector consists mainly of block grants and subsidies designated for specific activities, and in addition to this, the municipalities help finance specific activities every time citizens come into contact with the health services and the mental health services.

Regional development is financed through state block grants and municipal development contributions.

Within social health the municipalities pay for their own citizens at the region's institutions.

The block grant accounts for about 80 % of financing, the state subsidy for specific activities accounts for about 1% and the activity contribution for the municipalities is about 18 %.


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