Central government financing requirement for 2023


The Economic Survey, May 2023 as well as the Central Government Budget for 2023 will be published within the coming weeks.

The Ministry of Finance's estimate of the central government's net financing and financing requirement in 2023 is shown in Table 1. The central government's total financing requirement is estimated at DKK 92 bn. in 2023. The central government's total financing requirement consists - in addition to the net financing requirement - of redemptions on government bonds and transactions with the government funds managed by Danmarks Nationalbank, including, for example, purchases of social housing bonds. The estimate of the financing requirement is largely unchanged compared to the Economic Survey, March 2023.

The downward adjustment in the estimate of the net financing requirement covers three effects. One effect is an improvement in the estimate of the government’s budget balance of DKK 3 bn. whereof DKK 1 bn. are without influence on government liquidity in 2023. In addition, updated estimates of taxes and excise duties not paid also contribute to a reduction of the net borrowing requirement with DKK 5 bn. Increased expected disbursements related to on-lending have the opposite effect on the net financing requirement with an estimated effect of DKK 3 bn. 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 
  March 2023 May 2023
DKK bn. 1) 2023 2023
Net financing requirement -17 -24
Repayment of long term debt 2) 75 81
Repayment of short term debt 3) 16 16
Net purchase of state owned funds -0 -0
Net purchase of social mortgage bonds 18 18
Financing requirement 92 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 and May 2023.