Denmark’s public school system (Folkeskole) is based on trust, local autonomy and horizontal accountability. Municipalities and schools are responsible for making decisions about how to use and allocate their resources. This provides good conditions for managing resources effectively and for making sure resource decisions meet local needs. At the same time, municipalities and schools are held accountable for and supported in the management of their resources. There is a high level of financial commitment to education. Expenditure per student has always been clearly above average expenditures in the OECD and the EU. Recent policies, however, have acknowledged that better learning outcomes for all students are possible without using more of society’s resources on education. Concerning equity in funding, the Danish funding system entails explicit mechanisms for equalisation between municipalities and schools. The country’s approach to funding municipalities reduces differences in financial capacity across municipalities. Within municipalities, the fact that students facing some kind of disadvantage need extra resources and follow-up is widely accepted and school funding mechanisms typically take socio-economic characteristics of a school’s student body into account.