Danish Defence expenditure

The financial framework under the 2024-2033 Defence Agreement totals DKK 195 billion over the agreement period.

In addition, the Agreement on Strengthening the Combat Power of the Danish Armed Forces of 22 February 2025 allocated a financial framework of DKK 120 billion in an Acceleration Fund and derived additional expenditures in the period 2025-2033.

Most recently, the Consensus to Further Strengthen the Danish Armed Forces of 10 October 2025 allocated an additional financial framework of DKK 42.7 billion in the period 2026-2032.

The additional funds are financed by reserves for Danish defence and security and military support to Ukraine in the proposed 2026 Finance Act, as well as by fiscal space.

Table 1. Allocated financial framework to strengthen the Danish Armed Forces

Allocations under the 2024-2033 Defence Agreement

The economic framework under the 2024-2033 Defence Agreement is implemented through a series of political sub-agreements. Following the Consensus to Further Strengthen the Danish Armed Forces of 10 October 2025, DKK 193 billion of the total framework of DKK 195 billion has been allocated (see Table 2).

The allocations for specific initiatives are outlined in the appendices to the agreements, which are published (in Danish) on the Ministry of Defence website.

Table 2. Allocations under the 2024-2033 Defence Agreement

Allocation of the Acceleration Fund

The financial framework under the Acceleration Fund is being implemented on an ongoing basis through concrete initiatives to strengthen the combat power of the Danish Armed Forces.

Table 3. Allocations under the Acceleration Fund

Note: The allocation of released funds as a result of accelerated spending under the Acceleration Fund is not included in the calculation.

Ministry of Defence appropriations

The Ministry of Defence’s total appropriations in 2025 amounted to DKK 58.5 billion in the 2025 Finance Act. Appropriation changes and the allocation of funds for military support under the Ukraine Fund implemented during the year with the approval of the Finance Committee are included in the Supplementary Appropriations Act.

The Ministry of Defence’s appropriations are included in the annual finance acts and supplementary appropriations acts. The appropriations, divided into main accounts, etc., can be found in the Ministry of Finance’s Finance Act database under Section 12. Ministry of Defence.

Defence expenditures according to NATO’s definition

Defence expenditures according to NATO’s definition NATO defines defence expenditures as payments made by a national government specifically to meet the needs of its armed forces, those of Allies or of the Alliance.

The general definition is to some extent supplemented with further guidelines concerning expenditures, which can or cannot be included as defence expenditures. In certain areas, NATO’s definition deviates from the Danish definition of the Defence budget. For instance, expenditures paid by Ministries other than the Ministry of Defence may qualify as defence expenditures according to NATO’s definition.

On the other hand, some expenditures incurred within the national defence budget are excluded from NATO’s definition of defence expenditures. Subsequently, it is not decisive whether an expenditure is incurred within or outside the national defence budget. Thus, NATO’s definition enables a comparison of defence expenditures across NATO member states, as it takes into account variations in the structures of defence budgets.

Consequently, the defence expenditures reported to NATO are based on the national defence budget adjusted for expenditures, which are not in accordance with NATO’s definition, such as expenditures for civil defence and The Veteran Centre. Furthermore, other strictly civilian expenditures related to the environmental-protection vessels and The Coastal Rescue Service are also excluded from the calculation of defence expenditures reported to NATO.

Certain expenditures incurred by ministries other than the Ministry of Defence are included as defence expenditures, if, based on a concrete assessment, they are considered to comply with the criteria of the NATO definition, or if they are specifically mentioned as expenditures to be included.

For example, health care for present employees and state pension to retirees are included. Pension for public servants, who have served under the Ministry of Defence, is included as a direct consequence of NATO’s definition.

The calculation of the Danish defence expenditures, according to NATO’s definition, results in a somewhat higher estimate than the national definition (see table 4).

Based on the reported defence expenditures according to NATO’s definition, NATO calculates the defence expenditures as a percentage of the country’s Gross Domestic Product (see table 5).

More information can be found on NATO webpage