Indholdsfortegnelse
Year 3, assignment 1 - Public Sector
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Appendix 3
Appendix 4

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Uddrag
The public sector is relevant regarding economy. It is a big part of the economic cycle and is controlled by the government. In Denmark, the public sector is often used on healthcare, education, financial support within housing etc.

The income of the public sector is divided up in two sections; the direct taxes and the indirect taxes. The main income is from the direct taxes which are:
- Property value tax
- Corporate tax
- Personal tax
- Pension investment return tax

These taxes combined in 2017 according to the Minister for Economy, was 603.5 billion DKK. The personal tax constituted 482.1billion DKK of the combined income, which is therefore the main income of the direct taxes.

The indirect taxes combined in 2017 according to the Minister for Economy, was 347 billion DKK. The indirect taxes are:
- VAT
- Vehicle registration tax
- Excise duties

VAT (value added tax) constitute 206.4 billion DKK, which is the main amount of indirect taxes. VAT is added value to goods and services. It can e.g. be the added value on demerit goods, such as cigarettes, where we often see a raise in prices.

VAT is the second largest amount of all the different taxations. Therefore, the main income of the public sector is Personal tax and the value added tax.

The public sector expenditure is divided up in three sections, the welfare services, Economic affairs and environmental protection, and general public services.

According to Danmarks Statestik, the welfare services consist of 839 billion in DKK. The economic affairs and environmental protection consist of 84 billion in DKK.

Lastly, the general public services consist of 182 billion in DKK. The welfare services is therefore the main expenditure, which is split up between transfer payments and services.

Transfer payments is e.g.:
- Unemployment benefit
- Sickness benefit
- Child benefit

These are all benefits that are popular among Danes, and not seen much of in foreign countries such as America.

Services is e.g.
- Health
- Elderly care
- Education
- Daycare institutions