The Danish education system is financed by the state or the municipalities. Some institutions are self-governing, while others are owned by the state or the municipalities. In addition to public financing, tution fees are charged at private schools and user payment for a number of adult education programmes exists.

The self-governing educational institutions have two sources of revenue for financing their educational programmes; state grants and their own income from income-generating activities, participant fees and fees paid for uemployed people in activation programmes etc.

The central government's system of finansing education and training are almost exclusively based on the so-called taximeter system, a comprehensive financing system based on per capita grants (cast per student) to institutions. The grants are calculated primarily on the recorded student activity measured on the passing of examinations. The taximeter rate varies according to subject field and level of education. Many students release a large grant, few students only release a small grant. The budget of the previous year has no influence on the size of the budget of the following year.

The taximeter system is part of the overall strategy of target and framework management. The main idea behind this strategy is that decisions with regard to the implementation of educational programmes are best taken by the people directly faced with the problems, i.e. the heads and boards of the educational institutions.

A key element in the taximeter system is the block grant principle. As long as the block grant is used for legitimate purposes, the institution is free to spend the money in accordance with its own priorities.

All schools funded by central government receive their grants based on various taximeter systems adapted to the different types of schools.

References

For more information: The Taximeter System (Ministry of Children and Education).

The Danish Education System, Ministry of Higher Education and Science.