Central government financing requirement for 2021 and 2022
16-12-2021
The Economic Survey, December 2021, will be published December 17.
The estimates of the central government net financing and financing require-ment for 2021 and 2022 can be found in table 1 below. The financing require-ment for 2021 has been revised to DKK 226 bn., which is a decrease of ap-proximately DKK 70 bn. compared to the estimate in The Economic Survey, August 2021. The decrease is primarily due to a higher expected tax revenue, higher expected payments of deferred tax payments, and a lower expected fi-nancing requirement related to central government on-lending in 2021. The estimate of the central government financing requirement for 2022 is DKK 146 bn.
The financing requirement is met by debt issuance or by drawing on the central governments account at Danmarks Nationalbank.
| Table 1. Net financing requirement and central-government financing requirement | ||||
|---|---|---|---|---|
| August 2021 |
December 2021 | |||
| DKK bn. 1) | 2021 | 2022 | 2021 | 2022 |
| Net financing requirement | 28 | -18 | -77 | -47 |
| Repayment of long term debt 2) | 109 | 99 | 144 | 99 |
| Repayment of short term debt 3) | 153 | 95 | 153 | 70 |
| Net purchase of state owned funds | -12 | 0 | -12 | 0 |
| Net purchase of social mortgage bonds | 19 | 19 | 19 | 24 |
| Financing requirement | 296 | 195 | 226 | 146 |
|
1) Rounding may cause component sums to deviate from totals. 2) Incl. payments from the central government in cross-currency swaps and buybacks of long term debt with maturity date beyond 2021. 3) Repayment of short-term debt corresponds to the outstanding amount of Treasury bills and commercial pa-per in the beginning of the year. Source: The Economic Survey, December 2021. |
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Originally published at https://en.fm.dk/news/news/2021/december/central-government-financing-requirement-for-2021-and-2022/
