The Economic Survey, March 2023, will be published on March 23.
The estimates of the central government net financing and financing requirement for 2023 can be found in table 1 below. The financing requirement for 2023 has been revised to DKK 92 bn., which is a decrease of DKK 36 bn. compared to the estimate in The Economic Survey, August 2022.
Overall, the revised estimate of the net financing requirement for 2023 reflects three effects. One effect is an expected significant improvement in the government's budget balance, which follows from a general upward adjustment of expected tax revenue. This effect is partially offset by higher expected financing requirement related to central government on-lending and deferred tax payments from 2023 to 2024.
The financing requirement is met by debt issuance or by drawing on the central governments account at Danmarks Nationalbank.
| Table 1. Net financing requirement and central-government financing requirement | ||
|---|---|---|
| August 2022 | March 2023 | |
| DKK bn. 1) | 2023 | 2023 |
| Net financing requirement | -6 | -17 |
| Repayment of long term debt 2) | 80 | 75 |
| Repayment of short term debt 3) | 35 | 16 |
| Net purchase of state owned funds | -0 | -0 |
| Net purchase of social mortgage bonds | 19 | 18 |
| Financing requirement | 128 | 92 |
1) Rounding may cause component sums to deviate from totals.
2) Incl. payments from the central government in cross-currency swaps and buybacks of long term debt with maturity date beyond 2023.
3) Repayment of short-term debt corresponds to the outstanding amount of Treasury bills and commercial paper in the beginning of the year.
Source: The Economic Survey, March 2023.
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