Income shortfall reported in Tórshavn budget due to delay in Student School sale in Hoydølum

The largest reduction in income in the 2023 budget is attributed to the Student School in Hoydølum, which was supposed to be transferred to the city of Tórshavn for the Training School.

The net allocation in the budget reflects a decrease of 3.7 million Danish Krone (DKK). A total of 37 million DKK was designated as revenue from the sale of the Student School to Tórshavn Municipality, alongside 40.7 million DKK for the Training School.

However, the sale of the school in Hoydølum did not occur last year, leading to a shortfall of 37 million DKK. The reason for this was that all necessary requirements for building approvals, urban planning, and other related issues were not fully processed in the previous year.

The Training School was acquired for the University of the Faroe Islands, and renovations have already begun. The Minister of Children and Education expects the sale to be finalized this year, resulting in the anticipated income of 37 million DKK.

This transaction involves the Student School, the classrooms, and part of the premises in Hoydølum. The Training School was purchased last year for the University of the Faroe Islands and has commenced a major renovation.

The largest income shortfall noted last year was 79.4 million DKK, primarily because the government did not sell its shares in Smyril Line at that time.