The total budget amounts to 26.4 billion DKK in 2021 according to the Danish Finance Act for 2021. The appropriations are primarily based on

• The Danish Defence Agreement 2018-2023 of January 28, 2018, 
• Supplemental Agreement for the Danish Defence 2018-2023 of January 29, 2019
• Agreement of new fighter aircraft of June 9, 2016.

Overview of the appropriations of the Ministry of Defence in the Finance Act 2021

For further information of the Danish defence budget refer to the Agency for Public Finance and Management, Ministry of Finance www.oes.dk

NATO definition of the defence expenditures

NATO calculates the Defence expenditures of each member state according to NATO’s own definition. This calculation, which is a part of the Defence Planning Capability Survey, creates the basis for comparison of the Defence expenditures across NATO member states. The NATO definition differs in certain aspects from the Danish definition of the Defence budget. In the NATO definition the following expenditures are fully or partly included:   

• Pensions for public servants under the Ministry of Defence 
• Pension costs according to law on civilian workers 
• State pension to retirees 
• Healthcare for present employees 
• Qualifying civilian education acquired by newly recruited military personnel 
• VAT 
• National Survey and Cadastre 
• Danish Meteorological Institute 
• Denmark’s financial share of defence related initiatives of the EU 
• Denmark’s assessed contributions to UN peacekeeping operations

Conversely, expenditures for civil defence and certain other strictly civilian expenditures are deducted. The calculation of the Danish defence expenditures, according to the NATO definition, results in a somewhat higher estimate on the defence expenditures than the national definition (see table 4). A part of the NATO Defence Planning Capability Survey is a calculation of the Defence expenditures as a percentage of the Gross Domestic Product in the member states (see table 5). 

More information can be found on NATO's homepage