"There are Danish families with children and pensioners who are under severe financial pressure and clearly feel the high inflation," Finance Minister Nicolai Wammen said in a statement.

As part of the proposal, the government suggests giving a tax-free cash handout of 5,000 Danish crowns to elderly with a limited income, mirroring a similar move by the previous government in June last year.

The majority government has invited opposition parties to negotiate the proposal and aims to land a deal within two weeks.

($1 = 6.8287 Danish crowns)

(Reporting by Nikolaj Skydsgaard, editing by Terje Solsvik)