Economic Council miscalculates budget deficit in autumn report for Denmark

The Economic Council has made a miscalculation regarding a budget deficit of 400 million Danish kroner, as reported in its autumn report.

According to the national bank, the Economic Council did not include a proposed change to raise the thresholds in the Economic Fund by 200 million kroner in its assessment. Additionally, the council has factored in standard investments amounting to 50 million kroner.

The council based its assessment on the financial frameworks from last spring, meaning that the 2025 budget was not the basis for their calculations.

The Economic Council has expressed regret over the error, attributing it to a lack of transparency in the rules for setting up the budget. The 200 million kroner was subtracted twice in the assessment presented in the autumn report. This mistake has now been corrected in the report, although the estimated outcome still indicates a deficit.

The council has conveyed its disappointment over the miscalculation and has taken steps to enhance the approach to establishing the basis for evaluating the results of the national budget.