Budget Outlook 2, August 2013

Budget Outlook 2, August 2013, presents a status of the general and central government finances.

Based on the central government budget proposal for 2014 the deficit on the central government account (the CIL-account) is estimated to DKK 31¼bn (1.6 per cent of GDP). In 2013, the deficit on the CIL-account is estimated to DKK 17¼bn corresponding to 0.9 per cent of GDP.

The general government deficit is estimated to 1.7 per cent of GDP in 2013 and 2.0 per cent of GDP in 2014. Excluding temporary revenues from the reallocation of capital pension schemes etc., the public deficit is estimated to 2.9 per cent of GDP in 2013 and 3.2 per cent of GDP in 2014.

The structural deficit is estimated to 0.2 per cent of GDP in 2013 and 0.4 per cent of GDP in 2014. The structural deficit in 2014 is thus close to the limit in the Budget Law, according to which the yearly structural deficit cannot exceed ½ per cent of GDP.

Fiscal policy and other economic-political initiatives from 2012 and onwards are estimated to increase the GDP-level by approx. ½ per cent of GDP in both 2013 and in 2014.