Covid budget hole much smaller than expected

The budget deficit is significantly smaller than expected last spring.

Last May, the government took out a DKK 1.6 billion loan aimed at filling holes in the 2020 and 2021 state budgets caused by the corona crisis.

“This loan was based on estimates by all our financial experts on how the pandemic would affect our economy,” says finance minister Jørgen Niclasen.

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“Assuming that the current Covid situation does not worsen significantly, we can start repaying this loan as early as in June, which is much earlier than expected because our economy was not impacted as heavily as we had anticipated.”

Last year’s state budget deficit was about DKK 300 million, which is some DKK 800 million less than the estimate from May 2020 at the time of the big loan.

Read the Faroese version of this article here

Translated by prosa.fo

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