Tax revenue boosts public surplus
A robust labor market has resulted in a larger surplus in Denmark’s public finances than previously estimated, with a revised figure showing a 92.7 billion kroner surplus in 2023, according to Statistics Denmark. The year before, the surplus was 97.9 billion kroner. Revisions indicate a 5.6 billion kroner increase for 2023 and a 3.3 billion kroner for 2022, primarily due to higher-than-expected tax revenues. Higher wages and employment, leading to greater personal income taxes and lower unemployment benefit costs, are cited as reasons for the uptick. Denmark has seen a public finance surplus for the eighth consecutive year, with the highest in 2021, topping 105 billion kroner. Corporate taxes, in particular, have been unexpectedly high, with Danish companies performing well despite increased costs and challenging export markets. Denmark and Cyprus lead with the highest public finance surplus relative to GDP at 3.1 percent in 2023.