Monthly distribution of government payments
Danmarks Nationalbank prepares and publishes forecasts of government payments distributed on a monthly basis. Four forecasts are published regarding the fiscal year. The monthly breakdowns are based on the Ministry of Finance's estimate of government finances, published in
The Budget Proposal (August)
The Budget (December)
Budget Outlook 1 (May)
Budget Outlook 2 (August)
Moreover, the Ministry of Finance publishes Budget Outlook 3 (December), but Danmarks Nationalbank publishes no monthly breakdown based on Budget Outlook 3, as there is less than one month left of the current fiscal year at the time of publication. Based on the Ministry of Finance's estimate of government finances, the major items are allocated to different months according to payment patterns in previous years as well as details of changes in due dates for payments, e.g. as a consequence of new legislation.
The monthly distribution for 2013 is based on the Budget for 2013.
Day-to-day distribution of government payments
On the basis of Danmarks Nationalbank's monthly distribution of government payments a forecast of the daily distribution of government payments is prepared. The purpose is to estimate the liquidity requirements of monetary-policy counterparties. The daily distribution is issued on the penultimate banking day of each month and contains a prognosis of the daily distribution of government payments, as well as Danmarks Nationalbank's planned purchase and sale of certificates of deposit for the following two months.
Capital pension taxation
"The tax reform agreement" of June 2012 will result in one-off revenue from capital pension taxation in 2013. The timing and size of the revenue is subject to considerable uncertainty. Large revenue can lead to a considerable reduction of the monetary policy counterparties' net position towards Danmarks Nationalbank.
If the net position is reduced to an extent where there is a risk of unintended changes in money market rates, Danmarks Nationalbank will, due to the fixed-exchange-rate policy, add liquidity to the extend needed.