Growth in public expenditure ‘unsustainable’
The nation’s largest bank says newly released figures show public spending is out of control After the latest public expenditure figures for 2009 were published by Statistics Denmark today, Steen Bocian, the chief economist at Danske Bank, Denmark’s largest financial...
After the latest public expenditure figures for 2009 were published by Statistics Denmark today, Steen Bocian, the chief economist at Danske Bank, Denmark’s largest financial institution, says that public sector costs are unsustainable.
In a statement made to national broadcaster DR, Bocian said the growth in public consumption was about one percentage point higher than it appeared in the national audit, which he added, was a very significant difference.
‘All the discussions about whether to make cutbacks during the last few years has to stop,’ Bocian said. ‘Public expenditure has never been higher whether we measure it in absolute terms or as a share of the economy.’
According to Statistics Denmark, the national deficit was 47 billion kroner last year - which was expected.
However, public spending reached an unprecedented 496 billion kroner in 2009.
‘The level of public spending has reached an unsustainable level,’ Bocian said. ‘This means that there is a need for adjustments which will be regarded as cutbacks. But this has to be seen in the light of an excessive increase in public sector costs during the last few years.’
Bocian added that the growth in public spending underlined the need for economic reforms.