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<p>The Northern Ireland Executive receive ringfenced Financial Transactions Capital
(FTC) funding. FTC funding is different to other aspects of the DEL block grant as
it is treated as a financial transaction rather than spending and does not affect
Public Sector Net Borrowing.</p><p> </p><p>The Northern Ireland Executive Financial
transaction budgets are provided with FTC funding through the Barnett formula in a
consistent manner to UK Government departments. Where funding is provided on a net
basis, repayments of loans can be recycled indefinitely into new loans. Where funding
is provided on a gross basis, the Northern Ireland Executive is required to return
funding to HM Treasury within an agreed period.</p><p> </p><p>There were no underspends
for the financial years 2010-11 through 2015-16. In subsequent years, the underspends
were as follows:</p><ul><li>2016-17: £34.5m</li><li>2017-18: £109.4m</li><li>2018-19:
£171.9m</li><li>2019-20: £72.0m</li><li>2020-21: £26.4m</li><li>2021-22: £47.1m</li></ul><p>
</p><p>Outturn data for 2022-23 is not yet available.</p><p> </p><p>Any income from
repayments of loans or underspends against the Northern Ireland Executive’s wider
FTC funding can be used to reduce the amount of gross FTC repayable over time and
the Executive have made use of this option. The UK Government maintains regular engagement
with the Northern Ireland Executive on treatment of FTC funding.</p>
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