budgets

Budgets


The overall surpluses after operating and capital expenditure in the whole public sector for the years 2004-2008: (million DKK) 27,327; 77,362; 79,937; 75,560 ('07 preliminary); 69,140 ('08 estimate). The public sector debt-liabilities still outstanding 1 January 2008 in accordance with the Eurostat EMU-debt numbers (gross debt) are 440.9 billion DKK (26.0% of GDP). In spite of falling surpluses, this debt is expected to fall until 2015. As of 2008, there is no net debt in the public sector as a whole, but instead net assets of 43 billion DKK. The central government is determined to pay off the debt as fast as possible, avoiding the temptation to increase spending which might overheat the economy (increase wages and eventually prices drastically) because of a short supply of skilled labor and in the end require financial austerity measures to cool off the economy. Reporting on the record low unemployment numbers of under 50,000 persons in April 2008 published 9.30 am 29 May by Statistics Denmark, TV2 (Denmark), at 10 pm, with comments from Nordea Bank's (Denmark) chief economist Helge Pedersen, and DR2 (Danish Broadcasting Corporation), at 10.30 pm stressed the danger of overheating the economy and keeping public sector spending in check or otherwise risk economical-political measures. Being surprised at how low unemployment was, the economist said (TV2) that compared with previous periods with such a low unemployment rate, a trade deficit was avoided mainly because of the oil export.

The EMU-gross debt was 730 billion DKK at the end of 1993, 80.1% of GDP. During the four-year period 2004-2007 the public sector EMU-gross debt fell from 43.8% (641.9 billion DKK) to 26.0% (440.9 billion DKK) of GDP. The budget surpluses were (in billion DKK) 1.9% (27.2), 5.0% (77.4), 4.8% (79.3), and 4.4% (74.6) of GDP, respectively.