According to new figures from the national statistics keeper Danmarks Statistik, the Danish public sector enjoyed its biggest surplus in 11 years in the second quarter of 2019.
The results are particularly boosted by increased tax income from pension savings that helped the state to generate a surplus of 17.2 billion kroner – the highest since just before the financial crisis hit in 2008.
The Danish pension savings have been buoyed by a potent year on the stock market, which in turn has led to more tax funds being generated for the state coffers. In total, the Danes own pension assets to the tune of 3 trillion kroner.
Higher employment, more consumption
The result was further bolstered by a near record high level of employment, while the number of people receiving social benefits hasn’t been as low for over 30 years.
Furthermore, private consumption and car sales have been on the rise, which has led to more income for the state in terms of VAT and other taxes.
The latest prediction from the Finance Ministry has the total public sector surplus for 2019 landing at 44 billion kroner.
This morning, the new Socialdemokratiet-led government revealed that the finance minister, Nicolai Wammen, would unveil its 2020 budget proposal on October 2.
However, while Mette Frederiksen and company will put their imprint on the future of Denmark, they will have to credit the recently-ousted Blue Bloc opposition for the improved financial situation of the public sector.