[{"bbox": [83, 121, 1145, 227], "category": "Text", "text": "where no roads are connecting large distances between towns and outlying settlements. Some of the most remote human settlements globally are found in Greenland. To the limitations set by the sparse logistical infrastructure should be added climatic challenges related to the supply of staples and other goods as well as person transport, where in many cases costly airborne travelling is possible at certain times of the year."}, {"bbox": [83, 253, 1145, 360], "category": "Text", "text": "The distribution of expenses for education is shared between the municipalities and the Government budgets. In 2019 the total expenditures for education in municipalities is approx. EUR 177.3 million (equal to 51.2% of total public education expenditures) and approx. EUR 169.1 million of the Government's expenses (equal to 48.8% of total public education expenditures)²⁹."}, {"bbox": [83, 386, 1145, 572], "category": "Text", "text": "Even though schools in Greenland are publicly financed and managed, private schools exists with one school currently operating in the capital of Nuuk. As a new financing modality in a Greenland education context, public-private partnership is introduced as a financing instrument for the construction and operation of a new public school/day care centre in the capital of Nuuk. When opening, the school will accommodate 1,200 pupils, whereas the after-school centre will have room for 400 children and the integrated day care centre will have room for approximately 130 children. The construction of the school started in the spring of 2020 and it is expected that the day care institutions will be taken into use in the spring of 2022, whereas the school itself will start by the school year of 2023."}, {"bbox": [83, 598, 1145, 864], "category": "Text", "text": "According to the GEC the education profile and patterns educational choices of the Greenland population have changed only marginally during the past decade³⁰. A model-based projection of educational choices depicts various scenarios for the projection period 2015-2040. The GEC analysis concludes that if the currently observed rate of progress will not change it will take a long time to catch up with the comparative education gap to other western countries. Accordingly, the GEC concludes that the outcome of such heavy investment in education is unsatisfactory when only half of 25-34 year-olds only possess qualifications from primary and lower secondary school as their highest level of education in 2018, a figure that has remained nearly unchanged since 2002, when national statistics on education began to be compiled. According to the GEC, more funds for education will not solve the problem by itself - getting more out of the resources currently applied to the education sector is more effective³¹. This will be an important element for the policy dialogue of the present action."}, {"bbox": [83, 889, 1145, 1074], "category": "Text", "text": "*Commitment of the Government of Greenland to improve its tax policy and tax administration in mobilising revenue*\n\nCompared to many other countries, the Greenlandic tax system is relatively simple as income from work and capital gains is treated similarly. It is based on proportional taxation, and there are a limited number of fees and duties. While the system is based on the same basic principles as the Danish tax system, it is less complex, as the income basis in Greenland is different. Moreover, there is a declared intention of keeping the system simple. Taxation of individuals as well as companies is based on objective assessments, and exemptions from taxable income are clearly stated in the Income Tax Law (Article 34)³²."}, {"bbox": [83, 1101, 1145, 1367], "category": "Text", "text": "Even though the 2008 PEFA assessment report concluded that Greenland meets the criteria to be eligible for budget support, three key weaknesses were identified, among them two related to effectiveness of the Government's tax administration: 1) Tax audits (PI-14, PEFA dimension iii); 2) Tax collection and arrears (PI-15, PEFA dimension i). The 2008 status of these three areas comprised the baseline and the framework against which reform developments were monitored annually during 2009-2013. The PEFA assessment 2014, reported satisfactory progress in improving the GoG's PFM system and procedures, taking into account progress achieved against annual targets as well as positive direction of change. Early 2018 the GoG proposed an updated PFM Action Plan 2018-2020 as some key weaknesses, including those on the tax area, were deemed to be solved, cf. section 2.3.4 on Public Finance Management above for further details on the Government's PFM reform. A new PEFA assessment is on-going and will be the basis for the future policy dialogue around PFM."}, {"bbox": [83, 1393, 1145, 1525], "category": "Text", "text": "In future, due to the longer term challenges related to demography based un-sustainability of public finances, the GEC has in several reports stressed that political priority must be given to review and reform the welfare and tax system in order to avoid increasing structural public deficits. In line with the previous Inuit Ataqatigiit lead Government (2 June 2009 – 5 April 2013) the newly elected IA party lead coalition Government (April 2021) is expected to follow these recommendations on longer-term fiscal sustainability that eventually coincides with the"}, {"bbox": [72, 1564, 792, 1588], "category": "Footnote", "text": "²⁹ AWP, 2019, Annex 1: Education medium term expenditure framework 2018–2022."}, {"bbox": [72, 1586, 1145, 1613], "category": "Footnote", "text": "³⁰ Greenland Economic Council (GEC), \"Projection of the Education Level\", Technical Note to the GEC's Annual Report 2016."}, {"bbox": [72, 1612, 1130, 1638], "category": "Footnote", "text": "³¹ Greenland Economic Council, *Greenland's Economy*, section 3.1 *Education and the National Economy* Nuuk, August 2017."}, {"bbox": [72, 1636, 557, 1660], "category": "Footnote", "text": "³² PEFA-based Assessment of Greenland, ECORY, 2014."}, {"bbox": [1041, 1662, 1157, 1685], "category": "Page-footer", "text": "Page 29 of 35"}]