LAST UPDATE | 10 Oct 2023

MINISTER FOR FINANCE Michael McGrath has announced the creation of a new Future Ireland Fund, which will see 0.8% of GDP invested every year from 2024 through to 2035.

“The future Ireland fund, with a potential to grow to over €100 billion by the middle of the next decade, will help to protect living standards and public services for current and future generations,” the minister told the Dáil in his budget speech today. 

The Future Ireland Fund is one of two announced today, alongside a new Infrastructure, Climate and Nature Fund.

“These funds are vital to have future proof our economy and our public finances,” McGrath said. 

“This is not a rainy day fund,” he said. 

“This fund will benefit all of us. The children of today, people of working age today are pensioners and yes, also future generations.

“It will help us to meet the cost of running the state in the future. And it will make a contribution to the cost of health care of pensions, home care and much more,” the minister said.  

“I am announcing that we will invest 0.8% of GDP annually into the future Ireland fund from 2024 to 2035. This will be a sum of approximately €4.3 billion in 2024.

“In addition we will transfer seed funding of just over 4 billion euro into the fund next year from the distribution of the current national reserve fund. It is expected that with a funding level of 0.8% of GDP annually, the fund could potentially reach a total of  €100 billion by 2035.” 

Minister @mmcgrath has announced the creation of the #FutureIrelandFund, with a potential to grow to over €100 billion by the middle of the next decade, to protect living standards and public services for current and future generations. #Budget2024 pic.twitter.com/9nYa31Ho1z

— Department of Finance (@IRLDeptFinance) October 10, 2023

McGrath added: 

“It is intended to preserve the fund over a longer period and that the investment return will be used to support government expenditure. It will be a matter for the Government of the day when the drawdown occurs to use the return from the Fund appropriately.

“There are of course risks that could crystallise over the contribution period such as a national or global economic shock or reduced corporate tax receipts, but as we stand here today, this is a realistic and achievable plan for Ireland.”

You can find full details of today’s Budget announcement in our roundup here.