Lolland receives nearly a quarter-billion kroner in special state funding

Lolland Municipality will receive 223 million kroner from a Danish state fund for municipalities under financial pressure, the largest allocation among 22 recipients.

The special funding pool totals 1 billion kroner and was divided on the basis of demographic and socioeconomic challenges, as well as current financial difficulties. Forty-five municipalities applied for support after the pool was increased in the latest financial agreement between the government and Local Government Denmark.

Lolland had hoped to receive 300 million kroner. The municipality previously estimated that its budget for next year faced a shortfall of 531 million kroner, later revised to 347 million kroner. It said a declining population was among the reasons it needed to make savings, including 200 million kroner in administrative cuts.

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There is a need for this, because many municipalities are under pressure and are struggling to make their finances balance.

Economy and Interior Minister Pia Olsen Dyhr said the funding was needed because many municipalities were struggling to balance their finances. She said people should be able to count on a good school, safe childcare and proper care in old age regardless of where they live.

A separate loan pool of 200 million kroner will support construction investments in 14 municipalities. Randers will receive the largest loan authorization, worth 31 million kroner.

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People should be able to live a good life throughout Denmark.