Tight National Budget hits CBS

The government’s National Budget proposal adheres to two percent in savings annually over four years for universities, rising to just under eight percent in 2019. CBS President Per Holten-Andersen is frustrated but not surprised by what the proposed National Budget, to be negotiated in the Folketing, signals.

- It’s unfortunate that the government is maintaining its position on comprehensive savings at universities. In principle efficiency is healthy and earlier this year we’ve proven that we can do it. Considering that CBS is already underfunded, however, across-the-board cuts are critical for a university that provides graduates with a high employment rate in the private sector, explains Per Holten-Andersen.

It is still unclear how the savings on education will be carried out in actual practice. This will be determined in the coming weeks when Universities Denmark, led by its chair, will attempt to enter into a constructive dialogue with the ministry on where to find the savings.

The government’s proposal also contains up to DKK 1.4 bn in cuts to research. According to estimates in the National Budget proposal this puts Denmark’s total research investment at 1.01 percent of GNP. This will ostensibly affect research reserves and grants from the Danish Council for Independent Research. Performance-based funding grants for the humanities and social sciences will continue until 2018.

The president of CBS states that CBS will meet the policy requirements when the 2016 National Budget is adopted, but that CBS will simultaneously focus on innovation and development.

- CBS will and must keep moving. We will continue with the prioritised initiatives and efforts that can contribute to CBS's continued development, says Per Holten-Andersen, explaining that CBS’ management will begin by scrutinising the proposed budget and estimate the impact it will have before commenting further.

Negotiations on the National Budget will take place in the coming weeks and are expected to conclude in November. CBS will be watching closely and report on any news regularly.
 

For more information contact the head of the President's Office Martin Kramer-Jørgensen, email: mj.ls@cbs.dk, tel.: +45 38 15 20 62, or Press Manager Mikael Koldby, tel.: + 45 40 20 44 54.