DKK 150m state budget deficit forecast for 2022

Despite great economic progress in the past ten years, the Faroese Exchequer is in a worse position than before the 2008 financial crisis.

This is one of the conclusions of the 2022 spring report by the economic council, which was presented today.

When the 2022 budget proposal was presented in September 2021, the finance ministry forecast a DKK 38 million state budget surplus for 2022.

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Now, two months into 2022, the government-independent economic council is expecting a deficit of DKK 150 million for this year in its report, which is highly critical of the government’s economic policy.

Speaking at today’s event, recently appointed finance minister Uni Rasmussen conceded that the government’s expenditure growth has been too high and that something must be done to slow it down.

“The good news is that the current government expenditures are not financed by borrowing, which means we can withstand a deficit for 2022.”

Read the Faroese versions of this article here and here.

More Faroese News in English.