Pearse Doherty (Donegal, Sinn Fein)
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130. To ask the Minister for Finance his plans to establish a rainy day fund; and if he will make a statement on the matter. [32161/17]

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 in Ireland 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.

The rainy day fund is currently under review and further information will be provided in the 2017 Summer Economic Statement, which is due to be published this week.