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Cabinet To Approve State Wealth Fund To Future Proof The Country's Finances

File image: Rolling News

It will take the large, once off corporation tax receipts and invest it for use in the future.

Cabinet is to approve a memo this morning to establish a State wealth fund, the memo is aimed at future-proofing the country's finances.

More than one in four euro the government took in last year came from corporation tax receipts.

And about half of that 22.6 billion is expected to be windfall, or once off in nature.

You can see the problem coming - what happens if you suddenly lose one eighth of your tax take.

With that in mind, Minister Michael McGrath will bring proposals to Cabinet this morning to establish a new wealth investment fund.

It will take the large, once off corporation tax receipts and invest it for use in the future.

The fund may be modeled on Norway's, which started one in the '90s using oil and gas profits, and is now one of the biggest investors in the world.

There will be strict criteria for what the fund's money can be used for - with paying down the country's debt and supporting future pensions likely to be included.

But the move may come in for criticism from those who say the once off money should be used for immediate investment in infrastructure like housing.

 

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