Central Fund (Ireland) Explained

The Central Fund [1] is the main accounting fund used by the government of Ireland. It is a bank account held at the Central Bank of Ireland, managed by the Minister for Finance as head of the Department of Finance. It is informally called the exchequer by analogy with the UK Exchequer.[2]

Statutory basis

The Constitution of Ireland (1937) states:[3]

The previous (1922) constitution had a similar provision,[4] and an ancillary statute named the fund "The Central Fund of Saorstát Eireann" and replaced "Consolidated Fund" accordingly in UK laws retained by Saorstát Eireann (the Irish Free State).[5] The fund was renamed "the Central Fund" when the 1937 constitution renamed the state "Ireland".[6] A new Central Fund Act was passed annually in March between 1923 and 1965,[7] to authorise the Minister for Finance to issue money from the Central Fund in accordance with budget estimates until the Finance Act and Appropriations Act were finalised in July to handle the rest of the financial year. The Central Fund (Permanent Provisions) Act 1965 gave permanent authority to the minister, obviating the need for annual Central Fund Acts.[8] [9]

The Department of Public Expenditure and Reform (renamed the Department of Public Expenditure, National Development Plan Delivery and Reform in 2023) was separated from the Department of Finance in 2011, both to split the finance portfolio between a minister from each party in the Fine Gael–Labour coalition, and to facilitate implementation of austerity measures in response to the post-2008 downturn.[10] The Minister for Public Expenditure, National Development Plan Delivery and Reform has no direct access to the Central Fund; rather, the minister formulates spending policy and directs the Minister for Finance to allocate monies from the Central Fund accordingly.[11] In the 2017–2020 government, Paschal Donohoe held both portfolios, making the distinction less relevant.

Other funds

Non-exchequer government funds include:[12]

Social Insurance Fund: Pay Related Social Insurance contributions for distribution by the Department of Social Protection.[13] The fund, comprising a transaction account and an investment account,[13] was created in 1953, initially from four earlier funds.[14]
  • National Training Fund: established in 2000 for further education[15]
  • Ireland Strategic Investment Fund
  • a sovereign wealth fund established in 2014 and administered by the National Treasury Management Agency. It replaced the National Pensions Reserve Fund, a pension fund for state and public-sector pensions established in 2001.[16]
    National Surplus (Exceptional Contingencies) Reserve Fund: a rainy day fund established in 2019.[17]

    Local government authorities also have funds.[12]

    See also

    Notes and References

    1. Web site: An tAcht Príomh-Chiste, 1953 – Uimh. 9 de 1953 – Tithe an Oireachtais. Tithe an. Oireachtais. 19 March 1953. www.oireachtas.ie.
    2. Web site: Cosnaíonn Lá Fhéile Pádraig go leor ar an státchiste ach is fiú chuile euro de. 17 March 2023. Tuairisc.ie.
    3. Web site: Constitution of Ireland, Article 11 . electronic Irish Statute Book (eISB) . 14 February 2020 . en.
    4. Web site: Constitution of the Irish Free State (Saorstát Eireann) Act 1922, First Schedule, Article 61 . electronic Irish Statute Book (eISB) . 14 February 2020 . en.
    5. Web site: Adaptation of Enactments Act 1922 s.1 . electronic Irish Statute Book (eISB) . 14 February 2020 . en.
    6. Web site: Constitution (Consequential Provisions) Act 1937, s.6(1) . electronic Irish Statute Book (eISB) . 14 February 2020 . en.
    7. Web site: Search for Acts of the Oireachtas with "Central Fund" in title . Irish Statute Book . 14 February 2020.
    8. Web site: Central Fund (Permanent Provisions) Bill, 1965: Second Stage . Dáil Éireann (18th Dáil) debates . Oireachtas . 14 February 2020 . en-ie . 1 December 1965.
    9. Web site: Central Fund (Permanent Provisions) Act 1965 . electronic Irish Statute Book . 14 February 2020 . en.
    10. News: Fine Gael & Labour to form next Government . 15 February 2020 . RTÉ News . 6 March 2011 . en.
      News: New Finance split modelled on UK . 15 February 2020 . RTÉ News . 10 March 2011 . en. ; Book: MacCarthaigh . Muiris . A Ministry for Public Sector Reform . Public Sector Reform in Ireland: Countering Crisis . 2017 . 978-3-319-57460-8 . 59–90 . 10.1007/978-3-319-57460-8_3 . https://books.google.com/books?id=EA4rDwAAQBAJ&pg=PA59 . Springer International Publishing . en.
    11. Web site: Ministers and Secretaries (Amendment) Act 2011, s.18 . electronic Irish Statute Book (eISB) . 15 February 2020 . en.
      Web site: Ministers and Secretaries (Amendment) Bill 2011: Explanatory Memorandum . Oireachtas . 15 February 2020 . 3–4; Section 16 . 18 May 2011.
    12. Book: Appendix E: The General Government Sector . https://www.fiscalcouncil.ie/wp-content/uploads/2016/11/Appendix-E-The-General-Government-Sector-2.pdf . Fiscal Assessment Report . . Dublin . 102–103 . November 2016.
    13. Web site: Social insurance . Citizens Information Board . 15 February 2020 . en . 16 January 2020.
    14. Web site: Meaney . Kevin . Staff Paper 2015: Vote Management and the Social Insurance Fund . Irish Government Economic and Evaluation Service . 15 February 2020 . November 2015 . 4–5; §1.1 "Legislative Context for the Social Insurance Fund" .
      Web site: Social Welfare Act 1952 s.67 . electronic Irish Statute Book (eISB) . 15 February 2020 . en.
    15. Web site: National Training Fund Act, 2000 . electronic Irish Statute Book (eISB) . 15 February 2020 . en.
    16. Web site: National Pensions Reserve Fund (NPRF) . National Treasury Management Agency . 15 February 2020.
      Web site: S.I. No. 113/2001 - National Pensions Reserve Fund Act, 2000 (Establishment Day) Order, 2001 . 29 March 2001 . electronic Irish Statute Book (eISB) . 15 February 2020 . en. ; Web site: National Treasury Management Agency (Amendment) Act 2014 s.38 . electronic Irish Statute Book (eISB) . 15 February 2020 . en.
    17. News: MacNamee . Garreth . Paschal Donohoe establishes Rainy Day Fund with initial €1.5 billion in the kitty . 15 February 2020 . TheJournal.ie . 31 October 2019 . en.

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