Budget Outlook, December 2003


In light of the short-term forecast for the Danish economy, cf. Economic Survey, December 2003, the central government budget bill and the local government budgets for 2004, both the central government current, investment and lending account, i.e. the CIL-account and the general government finances show a continued surplus in 2004.

The central government budget bill for 2004 is fully financed in 2004 and is in line with the central government draft budget bill from August in respect to fiscal policy in 2004.

From an overall perspective the fiscal policy is expected to contribute expansively to economic activity corresponding to 0.4 per cent of GDP in 2004. The easing of fiscal policy stems primarily from income tax cuts and to a lesser extent easing of revenues including reduced excise duties on tobacco and alcohol, the tax freeze and growth in public expenditure.

The central government budget bill for 2004 reflects the political budget agreements on police and the Prison Service, research, public transportation investments and theatres among other things.