Written answers
Tuesday, 25 January 2011
Department of Finance
Exchequer Funding
8:00 pm
Arthur Morgan (Louth, Sinn Fein)
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Question 204: To ask the Minister for Finance if the balances in departmental funds can be used to fund the Exchequer; if these funds, as per the National Treasury Management Agency funding of Exchequer balance Q4 2010 are accounted for in Departments or can they be used; is it is cash that has yet to be spent or cash not spent; and if he will make a statement on the matter. [3742/11]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Departmental funds mainly comprise the Exchequer account at the Central Bank and Exchequer bank deposits, along with short-term borrowing from, and lending to, a number of funds under the control of the Minister for Finance. The â¬15.7 billion in balances available as at end-2010, as per the National Treasury Management Agency's Quarter 4 2010 Funding of Exchequer Balance statement, represents cash mainly held in the Exchequer Account to fund future Exchequer requirements. As the NTMA's statement outlines, the Exchequer deficit in 2010 was funded by an overall net cash borrowing of â¬12.6 billion and a â¬6.1 billion reduction in Exchequer deposits and other balances.
The build up of Exchequer cash balances in recent years has assisted in the timing of borrowing, allowing the NTMA to raise funds as opportunities arise without having to enter the market at particularly turbulent times.
Budget 2011 projects an Exchequer deficit of â¬17.7 billion in 2011. Under the terms of the Joint EU/IMF Programme of Financial Support for Ireland, the Exchequer's cash balances will be reduced to part-fund this requirement.
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