Based on the budgets of the central and local governments fiscal policy is expected to have a neutral impact on economic activity in 2005.
The economic expansion broadly follows the track laid out in the two latest Economic Surveys. Private consumption and housing investment have grown fairly rapidly supported by, in particular, income tax reductions as well as other initiatives in the so-called Spring Package.
Updated programme for the period 2004-2010
Economic Survey, August 2004
Based on the short term forecast for the Danish economy, cf. Economic Survey, August 2004, the central government budget proposal and the agreements with local governments on the economy for 2005, both the central government current, investment and lending account, i.e. the CIL-account, and the general government finances is expected to show surpluses in 2005.
Civil Service Advice and Assistance - Report no. 1443, June 2004
The overall growth forecast for the Danish economy has not changed significantly since the December projection. But the uncertainty so far surrounding the timing of the turnaround has been markedly reduced and there are now clearer signs of progress in the economy. Private consumption has increased noticeably since the middle of 2003, and residential and fixed business investments show signs of progress. The decline in employment appears to have come to an end, and during the first months of 2004 there has been a small reduction in unemployment.