John Lahart
Ceist:149. Deputy John Lahart asked the Minister for Finance the steps which will be taken regarding the €500 million due to be paid into the rainy day fund in the event of an orderly Brexit. [43254/19]
Amharc ar fhreagraTuesday, 22 October 2019
Ceisteanna (149)
Freagraí scríofa
The commencement of the Rainy Day Fund (RDF) will involve the transfer of €1.5 billion from the Ireland Strategic Investment Fund (ISIF). My initial intention had been to supplement this with a transfer of an additional €500 million from the Exchequer.
Under the disorderly Brexit scenario in which Budget 2020 was framed, the Exchequer will run a Budget deficit of 0.6 per cent of GDP in 2020. If the €500 million contribution was made next year it would have to be borrowed. It simply would not make sense to borrow in order to fund the RDF.
Further decisions on the timing of transfers to the Fund will be taken when there is greater clarity on the impact of Brexit and in the context of the prevailing economic and budgetary position.