Michael McGrath (Cork South Central, Fianna Fail)
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314. To ask the Minister for Finance if it is no longer his plan to provide for a rainy day fund in the years 2019 to 2021; and if he will make a statement on the matter. [28386/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As part of the 2016 Summer Economic Statement, the Government announced its intention to establish a contingency reserve/rainy day fund with effect from 2019.  The crisis years clearly demonstrated that volatility in the economic cycle can be much more pronounced due to the open nature of the Irish economy. As such, the rainy day fund would provide a prudent counter-cyclical buffer, with annual transfers from the Exchequer to the rainy day fund expected following the achievement of the Medium Term Budgetary Objective, projected to be next year.

Following the recent change to the composition of the Government, the rainy day fund is currently under review. An update to the rainy day fund will be provided in the Summer Economic Statement 2017.