A perusal of the various items of expenditure will show that, as formerly, the sum of 1,000,000 kroner is fixed as the amount of the Civil List, while for 1924-25 a further 222,000 kroner has been granted to the members of the Royal Family, and 175,000 kroner as an extraordinary addition to the Civil List. Parliament spends 22 million kroner. The Foreign Office accounts for in all 6.9 millions, of which 1.1 millions go towards the Ministry and 4.9 millions towards Danish Legations and Consulates abroad. The expenditure on National Defence is in all 51 million kroner, or about 12 per cent. of all expenditure. The army accounts amount to about 34 millions and the navy accounts to about 16 millions. Further, the costs of recruiting, billeting, etc., which are accounted for under the budget of the Home Office, amount to a little more than 1 million kroner. Among the items of expenditure concerning Interior Administration, Justice, etc., may be mentioned the Department for the Administration of Justice and State Prisons, which spends 15 millions, and the Collection of Taxes, 16 million kroner. Under the items concerning Trade and Industry there are agriculture and forestry, with about 13 millions, fisheries with 1.1 millions, handicrafts and industry 3.3, commerce half a million and shipping 1 million. Further, there is public works and traffic expenditure with 4 millions, as well as expenditure on pilots, lightshouses etc., buoys and lifeboat stations with 61⁄2 million kroner. Among the social expenditure there are Old Age Pensions, to which the contribution of the State is 41 million kroner, whilst an amount of a little more than 37 millions comes from the local governments; unemployment, which has cost the State 8 millions; grants to Sick and Burial Funds 13 millions, and grants to muni cipal works and house-building 15 millions. Regarding the details of these questions the section on Social Legislation will give further information. The expenditure on Public Education amounts to about 68 millions, an expenditure which is, broadly speaking, divided with one half to the State grants to the municipal schools and the public elementary schools, the other half going towards higher education and for scientific purposes, etc. The expenditure on Public Health, under which come especially the lunatic asylums (4 million kroner), the campaign against consumption (3 millions), and measures against epidemics (11⁄2 millions), is in all about 15 million kroner. Pensions account for 19 millions, which have gone towards the payment of the actual pensions, and do not include any sums put aside to meet future pension obligations. The payment of interest on the National Debt absorbs about 65 million kroner, or about 5 per cent. of the total amount of the Debt. CAPITAL ACCOUNT On this account the sum of 39.8 million kroner is shown as revenue from consumption of assets and raising of loans, and of this sum 9.2 millions are on permanent State loans, the remainder being from repayment on loans granted to various institutions, private persons, etc. As expenditure for the acquisition of assets and repayment of indebtedness 87.7 million kroner have been spent, or 47.9 millions more than the receipts on the Capital Account. Among the expenditure may be named 30.1 millions as capital investment in State undertakings, 11.8 millions for the acquisition of other properties, 21.5 millions increase in certain funds, 12.7 millions for the reduction of the National Debt, and 11.5 millions as loans granted to institutions, persons, etc. STATE ASSETS AND LIABILITIES The balance sheet as at March 31st., 1925, shows that the assets of the State amount in all to 1635 million kroner, including holdings of securities and cash in hand 315 millions, profityielding property and plant (State undertakings) 778 millions, and other property and plant 513 millions. Furthermore, two special Funds owned by the State for the support of education and science form an asset of 29 million kroner. Under the heading of liabilities, the internal State Debt is shown at 671 million kroner, and the foreign debt at 541 millions, the total National Debt amounting to 1212 million kroner. Its size in former years was: Total Kroner per Mill. Kr. March 31st, 1914. 1923.. 1924. 1925.. Capita From these figures it will be seen that since 1914 the National Debt has increased more than the population, even when it is kept in mind that the price-level has been more than doubled. If the Debt is deducted from the value of the State assets, the net wealth of the State on March 31st, 1925 was 423 million kroner, (of which 29 are placed under the two Funds previously referred to for education and science) as compared with 484 millions on March 31st, 1914. Finally, it should be observed that new taxes and charges have been imposed during 1925 for the extraordinary reduction of the National Debt. 2. LOCAL GOVERNMENT There are The unit of local government is the Kommune. >>Town Communes<< (Municipalities) and >>Country Communes<<< the latter being either Parishes which deal with local functions of minor importance, or County Communes, each of which comprises a certain number of parishes (generally about 60), and to which the more important functions are assigned. The County Councils exercise a certain superintendence over the parishes within their jurisdiction, especially in regard to the raising of loans. In order to raise a loan the town communes must have the sanction of the Home Office, and in other respects too they are under the superintendence of this Ministry, although all communes have local self-government. The financial year of the communes covers the period from April 1st to March 31st, like that of the State, but the statistical preparation of the accounts is not so far advanced as that of the State accounts. The latest information refers to the financial year 1923-24 for the communes, and this forms the basis of the following statement. LOCAL GOVERNMENT ACCOUNTS The current receipts appear from the summary below: Thus the receipts amount in all to 374 million kroner, of which a fourth is derived from property taxes, and a little less than half from income taxes. When making the assessment the actual income of the tax-payer may be increased up to 40 per cent. and reduced by a maximum of 70 per cent.; taking them all round, this is done according to the size of the income, the big incomes being increased, and the small ones reduced. On the total income amount thus arrived at an amount is assessed by such a percentage as, in combination with the other revenues of the commune, is necessary to cover the estimated expenditure. By this means the tax though the percentage is the same for all becomes progressive. In the country communes the rates may also be varied, and in the county communes these are the only taxes. tax-payers In the towns the rates have the character of a ground tax and a property tax (sites and buildings), in the country communes in addition that of a "Hartkorn" tax (tax upon land according to its fertility). The current expenditure, including expenditure representing capital outlay on construction and acquisition of non-profit-yielding assets (schools, hospitals, prisons, work-houses, etc.), is as follows: Town Country Mill. Kr. Administration 12.8 Mill. Kr. Total 17.8 As is stated above the current expenditure also includes extraordinary expenditure for special purposes, as for instance construction of buildings and other capital investments which do not yield any profit. Reckoned in this way the current expenditure of the communes totals 347 million kroner, or somewhat less than the current receipts. About 18 million kroner, or 5 per cent. of all expenditure, are spent upon administration. The country communes are administered at proportionately less cost than the town communes, as in the case of the former it is, to a certain extent, incumbent on the citizens as a civic duty to perform work connected with the administration without remuneration. The social expenditure amounts to 80 million kroner, or more than a fourth of the expenditure as a whole. Poor relief is almost entirely paid by the communes, and costs 32 million kroner. Old age pensions are paid partly by the State and partly by the communes, the share of the latter amounting to 38 millions. The Relief Funds also support, without involving the disabilities entailed by the receipt of poor relief, persons who are destitute through no fault of their town. The expense amounts to about 7 million kroner. The expenditure in respect of unemployment is 8 million kroner. The biggest item of expenditure in the accounts is the cost of the Public Education 57 million kroner. Combined with the expenditure of the State for eduction and science about 68 million kroner the sum spent on this account is thus comparatively very large. For Public Health, wich includes hospitals, the communes spend 37 millions, towards the administration of justice and the police 20 millions, roads and drainage 42 millions, and as interest on debt 52 millions. CAPITAL ACCOUNT, ASSETS AND LIABILITIES As has already been indicated, it is not easy to separate the Capital Account from the Current Account, but consumption of assets and loans raised during the financial year of 1923-24 may be estimated at about 110 million kroner, and against this must be set expenditure in the form of repayment of debt to an amount of 55 million kroner, and an increase of holdings and of assets, which are not included in the Current Account, of 81 million kroner. |