Dáil Éireann Debate, Thursday - 18 May 2023
208. Deputy Rose Conway-Walsh asked the Minister for Finance the effect a drawdown from the National Reserve Fund would have on the General Government Debt given the NRF is stored in National Treasury Management Agency Exchequer notes; if the National Reserve Fund is within General Government Balance; and if he will make a statement on the matter. [23908/23]
View answer209. Deputy Rose Conway-Walsh asked the Minister for Finance the effect a drawdown from the National Reserve Fund would have on the Government Budget Balance given the NRF is stored in National Treasury Management Agency Exchequer notes; and if he will make a statement on the matter. [23909/23]
View answerI propose to take Questions Nos. 208 and 209 together.
Budget 2023 provided for the transfer of €6 billion from the budgetary surplus to the National Reserve Fund (NRF). This was operationalised via the transfer of €2 billion in September last year, followed by the transfer of €4 billion in February of this year.
The National Reserve Fund is within the General Government sector. Transfers into the fund or any drawdown from the fund have no impact on the General Government Balance (Government Budget Balance) as it is simply the transfer of funds within Government. However, if there is a drawdown from the NRF and it is subsequently spent, this would be included in General Government expenditure and will have a negative impact on the General Government Balance.
General Government Debt measures the consolidated liabilities of the General Government sector. A drawdown from the NRF would have no impact on the level of General Government Debt. When compiling General Government Debt any holding of Exchequer Notes by the National Reserve Fund is subject to consolidation.
