45 million in profit in Qeqqata – But mayor warns of hardship

Strong tax revenue and tight finances are generating profits, but next year will be difficult.

Qeqqata Kommunia has just published their accounts for 2024. And the result is good news for Mayor Malik Berthelsen (S).

The municipality will end up with a profit of almost 45.2 million kroner.

– It shows a strong commitment to work, and I would like to thank both citizens and companies for their efforts, says Malik Berthelsen in a press release.

But even though there is a surplus in the municipal treasury, Malik Berthelsen warns against too much enthusiasm.

– Even though we have a profit, it is still necessary to maintain strict financial management.

Still challenges

In a press release, municipal director Hans Christian Svärd and the mayor focus on the fact that 42 million kroner more in taxes have been collected than expected.

And in total, the municipality has received 63 million kroner in additional revenue.

The increase is mainly due to increased construction activity and tax revenue from companies.

But the end of 2024 saw an exodus of several workers from Kangerlussuaq. This happened as a result of the new airport in Nuuk opening last year in November.

This leads to lower municipal tax revenues, and at the same time, Malik Berthelsen points out in the press release that there are also a number of construction projects that are nearing completion.

Therefore, one should not expect that the increased revenue in 2024 will also apply to next year’s accounts.

– Furthermore, the fishing industry is in uncertain conditions, so we cannot rely solely on increasing tax revenue, he says, drawing attention to the social area:

– At the same time, we must be aware of rising expenses in the social area. We are also facing major maintenance projects on municipal buildings and facilities, which will require significant resources.

Distorted budget

A very tight economy has also been maintained.

In fact, the municipality budgeted with a deficit of 207 million kroner – the surplus is therefore a deviation of a quarter of a billion.

But according to municipal director Hans Christian Svärd, this is because Qeqqata Kommunia does not have a construction fund.

This means that the costs for all construction projects are entered into the budget – even though money is only recorded as spent when a construction project is completed.