The Government has published a bill that sets up two new funds announced in Budget 2024.

The Future Ireland Fund is being established to deal with future pressures on spending arising from an ageing population, climate change, digitisation, and other financial and economic challenges.

The Infrastructure, Climate and Nature Fund is mainly aimed at supporting capital spending, particularly on environmental projects.

The publication of the Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill 2024 follows the publication of the bill’s general scheme last October.

Funds transfer

The bill allows the Government to put 0.8% of GDP into the Future Ireland Fund each year from 2024 to 2035, while around €4.1 billion will also be transferred from the dissolution of the National Reserve Fund in 2024.

After 2035, further contributions can be provided through a Dáil resolution. The fund will support State spending from 2041 onwards.

The bill allows finance ministers to halt or reduce contributions in the Future Ireland Fund, in the event of a “significant” deterioration in the public finances.

The Government also intends to invest €2 billion a year in the Infrastructure, Climate and Nature Fund each year from 2024 to 2030.

The bill sets out the conditions under which money may be released from this fund.

‘Stop-start’ investment

The National Treasury Management Agency will manage both funds.

“It is essential that we take action now to secure the public finances over the long term to ensure we can meet the future expenditure requirements we know will arise,” said Michael McGrath (Minister for Finance).

Paschal Donohoe (Minister for Public Expenditure, NDP Delivery and Reform) said that infrastructure fund would help to smooth the investment cycle and avoid the ‘stop-start’ capital investment of the past.

“It will also invest in the transition to a low-carbon economy, with €3.15 billion being set aside specifically to invest in environmental projects,” he added.