Denmark unveils draft budget for 2016

The Danish government presented a draft budget for 2016 on Tuesday, promising more spending on health care and economic growth.

Denmark's budget expenditures are projected at 1,086 billion Danish kroner in 2016, while incomes will total 1,029.4 billion kroner, and the budget deficit is expected to reach 2.8 percent of the gross domestic product next year.

According to the draft, yet to be approved by the Danish parliament, the government will set aside a further 2.4 billion kroner for health care in 2016 with a focus on chronic patients, cancer and dementia treatments.

It will also launch a number of initiatives to promote growth in areas outside the major cities, "so that the growth and prosperity is not just a city phenomenon but is something going on throughout the country," said Danish Finance Minister Claus Hjort Frederiksen when announcing the draft budget.

However, it will make cuts in such areas as green initiatives, childcare and development aid.

"We need to get fiscal policy back on track. It has been necessary to make some tough decisions. But it is necessary if you want to prioritize health and growth while ensuring sound public finances," Frederiksen said, adding that "we must ensure the taxpayer's money is being most appropriately used."

The Danish government maintained its GDP growth forecasts for 2015 and 2016 to be at 1.5 percent and 1.9 percent respectively. (1 U.S. dollar = 6.66 Danish kroner) Endit