The Water Services Act 2017 facilitated the introduction of a budgetary reform measure to, inter alia, reduce the complexity of cash flows between the Exchequer and the Local Government Fund by amending the Local Government Act 1998. As a result, from 1 January 2018, Local Property Tax is now paid directly into the Local Government Fund, rather than being directed in the first instance to the Exchequer and Motor Tax receipts are now paid directly into the Central Fund instead of to the Local Government Fund (LGF).
So prior to the end of 2017, Motor Tax receipts helped to fund the expenditure authorised by the Minister for Housing, Planning and Local Government from the LGF in accordance with Section 6 of the Local Government Act 1998. Further information on this budgetary reform may be found in the Budget 2018 Economic and Fiscal Outlook and in the 2018 Revised Estimates Volume.
It is important to point out that the Central Fund comprises tax revenue, non-tax revenue and borrowing. Issues from the Central Fund, as approved by the Dáil, are used in the day-to-day running of the State and it is, therefore, not possible to link specific revenue to specific expenditure.