Finance Minister defends size of allocation to 'Rainy Day Fund'

The Finance Minister Paschal Donohoe has been criticised for not allocating enough money to the 'Rainy Day Fund'.

The government today approved the publication of legislation to establish the fund.

It's due to grow to a total of €8bn in the coming years.

However, watchdog body the Parliamentary Budget Office says the Minister may not have set aside enough for the fund in the budget, given the risks posed by things like a possible no-deal Brexit.

Minister Donohoe says he has to balance the immediate needs of the country with future requirements.

"I could make a choice, for example, to invest less in housing, less in public transport, less in our universities and schools and put more of that money into the fund we're setting up," he said.

"But I have to get the balance right between meeting the needs of today and better meeting the needs of tomorrow as well."

Digital Desk

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