The Treasury can withstand deficits and debt

The national treasury can tolerate a few years of deficits and debt.

This estimation comes from the finance ministry, which has asked Parliament for authorisation to borrow DKK 1.6 billion in anticipation of a 2020 budget deficit of between DKK 800 million and DKK 1.5 billion.

Next year’s deficit is estimated at DKK 300 - 800 million.

Duties and taxes take a nosedive

Tax and duty revenues have dropped dramatically as a result of the corona crisis, and the finance ministry expects numerous supplementary appropriations later this year, especially from the health and social service ministries.

The finance ministry adds that this not a good time to sell government bonds and securities, as this would incur significant losses on exchanges.

The loan is expected to be completed in May or June.

Translated by prosa.fo