Budget Outlook 3, December 2012

12-12-2012

The international economy has been worse than expected this year. As a consequence recovery of the Danish economy has a longer prospect. GDP-growth is estimated at -0.4 per cent in 2012.

The actual budget balance is also weakened by the worsening of the economic outlook, and is estimated to show a deficit of 4 per cent of GDP in 2012, 2½ per cent of GDP in 2013 and 2¾ per cent of GDP in 2014  
 
The structural budget balance is expected to improve by 1½ per cent of GDP from 2010 to 2013 in line with the EU recommendation. This is among other things due to the fact that the budget agreement for the central government in 2013 and the budget scheme for the municipalities and regions in 2013 are fully financed.

The agreement for the central government budget for 2013 contains an extraordinary effort on the labour market for the recipients on long term unemployment benefit. Moreover there is a strengthening of the environmental effort and creation of new green jobs. Furthermore the tax on fat together with the planned extension of the tax basis for the tax on chocolate is abolished.

Read Budget Outlook here in pdf  [117 KB]