Denmark sees higher deficit in next year's central government budget

Denmark expects a higher deficit in next year's central government budget than it did in August and this could increase the country's borrowing need and bond issuance, documents obtained from the Finance Ministry showed on Friday. The 2017 deficit is now expected reach 21 billion Danish crowns ($3.0 billion), 13 billion crowns more than the government estimated in August.
The bigger deficit arises mostly from lower than anticipated revenue from pension yield taxation. Revised borrowing needs will be published next week. The government expects to cover the shortfall by issuing an additional 5 billion crowns in government bonds and by withdrawing 10 billion crowns from its central bank account. The government has also lowered its expectation for the average oil price next year to $51 per barrel from $53 and therefore sees a fall in revenue from North Sea oil and gas production to 2.9 billion crowns from 3.8 billion in 2016.