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Government Presents Savings Plan Aiming to Reduce State Administrative Expenses

The government has unveiled a savings plan targeting a reduction of at least 5.5 billion kroner in state administrative expenses by 2030, which corresponds to 6,500 full-time positions. This initiative comes in response to growing criticism over the increasing number of administrative employees in the public sector.

The plan, presented to union representatives from government ministries, aims to reprioritize state spending, with savings in administration intended to finance increased expenses in other areas. Finance Minister Nicolai Wammen acknowledged the government’s need to sharpen its priorities, admitting that too many administrative man-years have been spent on the wrong tasks.

Berlingske’s political commentator, Bent Winther, suggests that this initiative is unlikely to silence criticism from the opposition, particularly Liberal Alliance and other blue parties, for whom the attack on public bureaucracy is a key political battleground. Winther notes that while some within the ministries may be uneasy about the savings, many outside may find the proposed reductions insufficient, as they only roll back a third of the increase that has occurred between 2019 and 2024.

The number of administrative employees in the public sector reached 100,000 last year, intensifying criticism of the government. Since the Social Democrats took power in 2019, the state has grown significantly, with an increase of 18,351 employees in ministries and agencies, 13,475 of whom are administrative. While some of this growth is attributed to prioritization of the Ministry of Taxation, the Ministry of Justice, and the Ministry of Defence, the reasons for the remaining increase are less clear.

The government’s plan does not promise an overall reduction of 5.5 billion kroner in total state expenses, but rather a reallocation of resources. Winther believes that the Social Democrats, Mette Frederiksen, and Nicolai Wammen, who have long advocated for fighting bureaucracy, faced a “serious losing case” due to the rising administrative expenses. Despite potential opposition attacks on the savings plan, Wammen and his colleagues will now have a response when confronted about the increasing number of administrative roles.