The 18 municipalities are each to be given special funding from a 620 million-kroner pool, the Ministry of the Interior and Housing confirmed in a statement on Tuesday.
An agreement relating to municipal budgets next year resulted in an additional 250 million kroner being added to the funding compared to normal years, the ministry said.
“With this year’s financial [municipal] agreement we are reaching an extraordinarily high level for special subsidies in 2023 with more than 600 million kroner,” Interior and Housing Minister Christian Rabjerg Madsen said in the statement.
“I hope that the 18 municipalities use this opportunity to invest in measures that can support a long-term improvement of their financial situations,” he said.
The 18 municipalities, and their share of the pool in millions of kroner, can be viewed on the map below. They are distributed across Denmark but with relatively high concentrations in northwestern Jutland and on southern islands Lolland and Langeland.
Lolland and Langeland’s municipalities, as well as the municipality of northern island Læsø, had already been pledged some funding from the pool as part of development partnership agreements announced earlier this year.
To be awarded the funding, municipal governments were required to apply based on pre-set criteria.
These related to their demographic and socioeconomic situations along with current and ongoing financial difficulties, the ministry states.
A total of 50 Danish municipalities applied for the special subsidies for 2023. 21 have been given dispensation to borrow from a loan fund of 200 million kroner.
The money is separate and considered supplementary to the so-called udligningssystem (‘levelling system’) which distributes state budgets between municipalities in an attempt to ensure equal funding.