Budget Outlook, August 2006

29-08-2006

The central government budget proposal for 2007 and the agreements with local governments on the economy for 2007 reflect the economic priorities of the Danish government in 2007. The budget proposal also reflects the welfare agreement and the agreement on future immigration of June 2006.

The central government budget proposal for 2007 and the agreements with local governments on the economy for 2007 reflect the economic priorities of the Danish government in 2007. The budget proposal also reflects the welfare agreement and the agreement on future immigration of June 2006.

The welfare agreement includes a globalization pool, labour market initiatives and a reform of the early retirement system, cf. summaries of welfare agreement and agreement on future immigration available on www.fm.dk . The globalization pool will enable invest-ments in education, research and innovativeness. The labour market initiatives are expected to increase the labour force and reduce structural unemployment.

Furthermore, the budget includes increased expenditures on foreign development aid and environmental protection. The government has also prioritized improvements for families with children, the most vulnerable groups, the elderly and the health care sector.

The central government budget proposal and the agreements with local governments include new initiatives of DKK 8¾bn in 2007.

Larges surpluses on the general government finances and central government current, investment and lending account (CIL-account) are estimated in 2006 and 2007, cf. sections 2 and 5.

Download Budget Outlook, August 2006 in PDF here.