Government provides details on future fund

Finance Minister Siobhan Coady provided an update this morning on how the Future Fund would look. If passed, the Act will be a tool for government to use to add money from one-time sources and non-renewable resources to strengthen finances, pay down expensive debt and lower the cost of borrowing.

All net proceeds of tangible and intangible assets sold for greater than $5 million and a portion of non-renewable resource royalties received in the previous fiscal year would be added to the fund.

Under the proposed legislation, money may be withdrawn from the Future Fund to help pay down the public debt or pay an amount required due to an extraordinary circumstance.

The Future Fund would be managed by the Department of Finance and a Board of Trustees will provide oversight.

The Act will receive the second reading in the House of Assembly today.