The ratings on Denmark reflect policymakers' longstanding commitment to fiscal discipline. The general government, which posted a 4.5% of GDP surplus in 2007, is expected to continue posting significant fiscal surpluses at above 2% of GDP in the medium term (excluding flows to and from the defined contribution pension system). The 2008-2009 tax cuts and initiatives to improve the quality of public services in Denmark may, however, put some strain on public finances in the medium to longer term, given that the strong revenue increases in recent years may not remain as favorable. Having peaked at 80% of GDP in 1993, general government debt is expected to fall to around 20% of GDP by year-end 2008 and is forecast to
