Eamon QuinnSome of the funds the Government plans to inject over the next few years into its rainy day fund could be much better used to lift the crisis of funding facing higher education, business group Ibec has said.In its annual submission ahead of October’s budget, Ibec said it broadly approves Finance Minister Paschal Donohoe’s spending priorities for 2019, but wants monies destined for the rainy day fund to go instead to universities and colleges, which it said were losing international status.The business group argues that strong economic growth and prosperity and the huge corporate tax bounty flowing from multinationals give the Government room to focus on boosting Irish firms, SMEs and start-ups.Current incentives designed to help Irish SMEs close the gap with foreign-owned firms were “tied up in restrictions and red tape” and were not working, it said, adding that the challenges of US tax cuts and Brexit demand cutting-edge policies.It favours a … [Read more...] about Ibec: Use rainy day fund for higher education funding crisis
Rainy day funds
Kevin Tano Pacific Daily News Published 6:36 p.m. UTC Jul 11, 2018 The Guam Visitors Bureau may be getting more funding for their Rainy Day Fund after Sen. James Espaldon, R-Tamuning, introduced a bill that would amend the current policy for the fund. Bill 319-34 would amend language and make clear that the annual deposit would be 1.5% from the adopted revenue projection from the Tourist Attraction Fund or $200,000 — whichever amount is greater, according to the news release. More: Denight: GVB works to address challenges More: GVB hosts sixth annual BBQ Block Party Currently, GVB's Rainy Day Fund allows for an option between the minimum $200,000 or the 1.5% adopted revenue projection. Espaldon said the fund, under the control of the bureau's board of directors may use the deposit for unique and emergency situations. "In these trying economic times, it is of the utmost importance that GVB have access to these deposits as … [Read more...] about Sen. James Espaldon introduces bill to provide more rainy day funds to GVB
He will spend the summer working on the package - but what do we know about the Budget 2019 plan so far? How much money does Paschal Donohoe have for Budget 2019?In theory the Finance Minister will introduce a budgetary package worth €3.4bn – but a significant portion of this money (€2.6bn) has already been earmarked for spending. What has it been earmarked for?The Government has already committed to: €1.5bn in capital expenditure as part of the National Development Plan;€300m carry-over costs associated with measures introduced this year;€400m for public sector pay increases;€400m for demographic costs.So how much will there be for Budget day announcements?Based on current forecasts, Mr Donohoe will have €800m to play around with. This will be split in a 2:1 ratio in favour of spending over any tax cuts. What sort of tax cuts?The minister plans to target middle-income earners by raising the threshold at which people start paying … [Read more...] about Tax cuts and the ‘rainy day fund’: What do we know about Budget 2019 so far?
Paschal Donohoe says the new rainy day fund will act as an insurance policy for the economy. Three billion euro will be put into the fund over the next three years, starting with €1.5bn from the State’s sovereign wealth fund, the Ireland Strategic Investment Fund (ISIF). The first tranche of €500m will be added as part of Budget 2019 and the Government will endeavour to put aside around €8bn altogether in the medium term.It is aimed at acting as a cushion for the economy in the event of another financial crash.Finance Minister Paschal Donohoe says they have tried to find a middle ground between spending on services and saving money. Mr Donohoe said: "I believe that strikes the right balance between making resources available to invest in the here and now and find other ways to strengthen our economy in the future while putting in place an insurance policy like this, while also trying to bring our deficit and our borrowing requirements to where they are now, … [Read more...] about State to set aside up to €8bn for ‘rainy day’ fund
Ireland will aim to set aside 8 billion euros ($9.3 billion) in its new "rainy day fund" over the medium term to help shield its booming economy from any potential shocks in the future, Finance Minister Paschal Donohoe said on Wednesday. Ireland outlined plans for setting up the contingency reserve in 2016 and Donohoe said last year he would initiate it with 1.5 billion euros ($1.75 billion) from the country's sovereign wealth fund, the Ireland Strategic Investment Fund (ISIF), and add 500 million euros ($585 million) a year for the next three years. Donohoe will set aside the first 500 million euros as part of his budget for 2019, which will be announced in October. "The medium term plan is that we would get this fund up to approximately 8 billion euro," Donohoe told the Newstalk radio station after the cabinet approved the establishment of the fund on Tuesday. "We have many other needs that we have to meet each year but given how low the deficit is at the moment and given where our … [Read more...] about Ireland to build $9.3B ‘rainy day fund,’ minister says