Dáil Éireann Debate, Thursday - 24 October 2019
63. Deputy Michael McGrath asked the Minister for Finance if the €500 million intended for the rainy day fund in 2019 will be available in 2019 and 2020; if it makes up part of the €1.2 billion Brexit package; and if he will make a statement on the matter. [43988/19]
View answerIn my Budget 2020 speech, I set out that a disorderly Brexit is now the baseline scenario for budget planning purposes, and therefore a budget deficit is in prospect. On that basis, I decided that there will be no transfer of €500 million from the Exchequer this year to the National Surplus (Exceptional Contingencies) Reserve Fund (the Rainy Day Fund). However, as set out in my Budget speech, I will be transferring the previously earmarked €1.5 billion from the Ireland Strategic Investment Fund (ISIF) as this is not money that will have to be borrowed as it is currently in the ISIF.
I also set out that the funds transferred to the Rainy Day Fund can be deployed in the event that the economic impact of a disorderly Brexit is larger than assumed. The €500 million of Exchequer funding not being transferred to the Rainy Day Fund this year will remain as Exchequer cash balances and therefore will be used to meet the Exchequer funding requirement, such as for public spending priorities including Brexit related spending.
