Dáil Éireann Debate, Tuesday - 17 April 2018
222. Deputy Michael McGrath asked the Minister for Finance if dividends from each of the State-supported banks are deemed under EU fiscal rules to be financial transactions; if the receipt of dividends is recorded as revenue in the national accounts when they are received; if moneys from the dividends are paid into the Exchequer or into the Ireland Strategic Investment Fund; and if he will make a statement on the matter. [15164/18]
Amharc ar fhreagraThe Ireland Strategic Investment Fund (ISIF) holds the AIB and Bank of Ireland shares on behalf of the State. Dividend payments are therefore made to the ISIF. Dividend payments from Permanent tsb would be made direct to the Exchequer.
Regarding proceeds from dividends, these are typically recorded as property income in the European System of Accounts (ESA 2010) framework and not as financial transactions. Therefore any dividend payments, to either the ISIF or the Exchequer, would be recorded as general government revenue and, as such, would improve both the general government balance and the structural balance.
As dividends are not a discretionary revenue measure, they have no impact on the expenditure benchmark or fiscal space calculations.
