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OECD Economic Surveys: Denmark 2008

image of OECD Economic Surveys: Denmark 2008

OECD's periodic survey of the Danish economy.  After examining some of the key challenges faced by Denmark, the survey looks in more detail at the fiscal strategy; promoting employment and inclusiveness; tax reform, hours worked and growth; health care; and pension savings and capital taxation.

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Fiscal strategy

keeping with the targets

The government’s new 2015 Strategy provides a valuable framework for focusing on the long run fiscal position and highlighting the impact of reforms to improve publicly funded services and the tax system. The paths envisaged for the fiscal balance and public spending are reasonable, but the strategy lacks a rigorous set of mechanisms to ensure that the targets are adhered to. The somewhat loosely formulated targets for public consumption spending could be problematic, because spending overruns, in particular in the sub-national parts of government, have often been the Achilles heel of fiscal management. The purpose of this chapter is to assess options for establishing mechanisms to ensure targets are met.

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