Budget 2021 will dip into the State's ‘Rainy Day Fund’

Minister for Finance has received Cabinet approval for drawing down €1.5bn from the National Surplus (Exceptional Contingencies) Reserve Fund 

Minister for Finance Paschal Donohoe said it is appropriate that we release the funds at this time

Minister for Finance Paschal Donohoe has received Cabinet approval for drawing down the €1.5bn from the ‘Rainy Day Fund’ for use in Budget 2021 due to the coronavirus pandemic.

Use of the National Surplus (Exceptional Contingencies) Reserve Fund, better known as the ‘Rainy Day Fund’ has been approved to help the government “remedy or mitigate the exceptional circumstances arising from COVID-19.” 

In announcing the Government’s decision Minister Donohoe said “We are in exceptional times."

"The fact that our public finances were so carefully managed in recent years put us in a good position and allowed us to provide for such contingencies."

"It is appropriate now that we release the funds that are at our disposal, as we work to meet the needs of our people, support businesses and strive towards stabilising our economy once again.”

Budget 2021 will be published on October 13.

Mr Donohue said the budget is being formulated against the background of continued economic, financial and wider societal fall-out from the COVID-19 pandemic and against the threat of a disorderly ending of the transition period which governs bilateral trade between the EU and UK.

"With limited resources available, the priority of the forthcoming Budget must be to provide support to those areas most in need."