– The easing to keep the hand under the economy is temporary, and that means we will have a tighter fiscal policy in 2022.
– A significant part of the normalization of fiscal policy is that relief packages and other temporary measures are being phased out.
This is not the first time that the government has received advice on tightening fiscal policy – ie securing more revenue or less spending – in 2022.
The presidency of the Economic Councils, called the Economic Wise Men, has also previously pointed out that it may be necessary for the public sector not to breathe new life into the economy.
Both Danmarks Nationalbank and the sages have expressed that it could lead to so-called bottlenecks in certain parts of the economy. Roughly speaking, it is an expression of the fact that there is more demand and more tasks than there is manpower to perform.
An example of a temporary scheme that Nicolai Wammen has stated will expire is the increased deduction for green investments in the home.
The government does not intend to extend that increase.
On Wednesday, the finance minister elaborated that after the corona crisis, the government has its economic focus on the long run.
– The task now is to look ahead. Therefore, the government is preparing an ambitious reform program with a ten-year perspective, which aims to increase growth and prosperity in Denmark, he says in the written response.
Source: The Nordic Page