COPENHAGEN (AFP) - Denmark's economy heavily marked by the financial crisis.

• Sweden dramatically hikes growth forecast
• Finland hikes outlook for its battered economy
• Norway's economy grows faster than expected

The Danish government on Tuesday presented its 2011 budget proposal, heavily marked by the financial crisis and with this year's record high public deficit falling only slightly.

Finance Minister Claus Hjort Frederiksen said the deficit next year would likely tick in at 78.7 billion kroner (10.56 billion euros), or 4.4 percent of the country's gross domestic product (GDP).

In 2010, the government said it expects the Scandinavian country to post a deficit amounting to 4.6 percent of GDP, which would be a record high but still far lower than its previous estimate in May of 5.1 percent of GDP.

Denmark's public deficit nonetheless remains higher than the 3.0-percent ceiling permitted within the European Union.

The finance ministry also maintained its May economic growth forecast for 2010 of 1.4 percent, and raised slightly its GDP growth estimate for next year to 1.8 percent from the 1.7 percent it predicted four months ago.

The government also lowered its unemployment forecast for this year to 121,000 people out of work down from its previous forecast of 130,000 jobless, and for next year 125,000 unemployed from its May estimate of 135,000.

"We have spent a lot of money this year and last to counter the crisis. That has contributed to unemployment growing less than we had feared," Hjort said in a statement.

"But our agressive policy has also left a large hole in our wallet. This is something we will correct," he added.