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State to invest in a €100bn fund to 'future proof' the economy

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

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.” 

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

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    Mute Gerry Dornan
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    Oct 10th 2023, 5:26 PM

    For the next bail out of the banks.

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    Mute Gar Fitz
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    Oct 10th 2023, 5:36 PM

    Future proof?? Why not sort the mess in the present

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    Mute MTB Mayo
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    Oct 10th 2023, 5:34 PM

    Meanwhile we are €237bn in debt.

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    Mute Diarmuid Hunt
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    Oct 10th 2023, 6:13 PM

    @MTB Mayo: Yes, most countries are, National debt does not work in the same way as personal debt.

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    Mute MTB Mayo
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    Oct 10th 2023, 7:03 PM

    @Diarmuid Hunt: No s.h.1.t Sherlock. It’s still debt, we make interest payments on it and we are exposed to the risk of rising bond yields. Any gains from a sovereign wealth fund are cancelled out by interest payments on debt.

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    Mute Diarmuid Hunt
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    Oct 12th 2023, 7:15 AM

    @MTB Mayo: Seems like you still don’t understand, well done.

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    Mute Michael Mc Gee
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    Oct 10th 2023, 5:38 PM

    Any plans for the present moment? Everything is future!

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    Mute john dennehy
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    Oct 10th 2023, 5:59 PM

    Future Proof the economy by building houses for young workers to live in, instead of them emigrating to other countries to have a chance of a decent standard of living.

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    Mute uUleRhCu
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    Oct 10th 2023, 6:59 PM

    @john dennehy: We are at maximum building capacity at the moment…. Every builder I know can’t get staff and it’s the same across the world.

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    Mute john dennehy
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    Oct 10th 2023, 8:31 PM

    @uUleRhCu: That sounds awfully like the excuse for the banking bailout in Ireland overseen by FFG, it’s a global crisis nothing to see here. Remind me how long has FFG been in power in this country, this doesn’t happen overnight or in a year or two, it’s decades of mismanagement and poor decisions by successive Fianna Fáil and Fine Gael lead governments.

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    Mute MHM
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    Oct 10th 2023, 5:44 PM

    it would seem both parties in power are pretty much happy with things as they are.

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    Mute Shane O Mac
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    Oct 10th 2023, 6:33 PM

    God help the future if you can even sort the present problems.

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    Mute Shane O Mac
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    Oct 10th 2023, 6:34 PM

    @Shane O Mac: *can’t

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    Mute Chris Curran
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    Oct 10th 2023, 5:36 PM

    Greater data connectivity between government departments would be a start to improve provision state services.

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    Mute Gerard Carey
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    Oct 10th 2023, 7:20 PM

    Might want to start building new prisons.
    We are going to need them.

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    Mute Sun Rise
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    Oct 10th 2023, 6:46 PM

    Whinge. Moan. Whinge. Moan.

    So predictable.

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    Mute Marcus Maher - Triskellion Films
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    Oct 11th 2023, 6:22 AM

    100 billion and yet can’t find that money to fix the housing, education, health, better infrastructure system…f…..seriously, talk about warped priorities.

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