Central Government Debt

Strong Danish economy continues to result in low central government debt

In 2025, the central government debt increased by kr. 18 billion to kr. 235 billion, corresponding to 7.6 per cent of GDP. Despite the small increase, the debt level remains among the lowest in Europe. Public finances remain robust, supported by higher tax revenues from pension tax, corporation tax and income tax. The government's account balance was kr. 161.5 billion at the end of the year.

Government financing of loans to municipalities and regions saves approximately kr. 1 billion annually

In 2025, the government took over financing of the municipalities and regions as a part of the government's focus on consolidating public borrowing centrally with the government. The initiative is estimated to result in annual interest savings of approximately kr. 1 billion.

The world's first government bond issued under the European Green Bond Standard

In September, the government opened a new 10-year green government bond as part of the updated green bond programme. As a result of this issue, Denmark became the first country in the world to issue a government bond under the new European Green Bond Standard.