Denmark's economy is expected to contract by 4.5% this year amid the coronavirus crisis, the government said as it presented its 2021 budget proposal on Monday.
The gross domestic product (GDP) was, however, expected to grow by 4.2% next year. The government cautioned there was great uncertainty over the economic outlook.
As part of its measures, the government was to set up a "war chest" worth 9.2 billion kroner (1.24 billion euros) to shore up the Danish economy, and secure jobs and welfare, Finance Minister Nicolai Wammen said.
According to Wammen the money would also be used to buy vaccines, if available, against Covid-19, and fund extra costs in the health services.
"The goal is quite simple, we must get everyone out of the crisis," Wammen said.
The minority Social Democratic government needs parliamentary support for the budget.
Some of the parties it cooperates with expressed disappointment over the proposals on climate-related issues.
Create new jobs
"The climate crisis is an equally big crisis, and we can kill several birds with one stone by investing in a green transition that can create new jobs and new opportunities," said Sofie Carsten Nielsen of the Social Liberals, news agency Ritzau reported.
Wammen told reporters that the government remained "deeply committed" to its climate pledges.
Negotiations on the budget were expected to begin in October when parliament reopens after the summer break.
Wammen told reporters Denmark would remain committed to allocating 0.7% of GDP to foreign aid, but conceded that the aid budget would decline due to the economic contraction.
