State Finance
The Constitution’s Provisions
The Constitution makes provision for control by the Oireachtas and in particular, the Dail of State finances. Article 11 of the Constitution provides that all revenues of the State from whatever source arising shall, subject to such exception as may be provided by law, form one fund. This is referred to as the consolidated fund or central fund.
The fund is held at the Central Bank exchequer account. There are a number of subsidiary accounts. It is not a single fund or account as such, in the sense of being held in a single account.
See the articles in relation to the Dáil and legislature in relation to money bills. The Seanad has no power to amend them. Estimates are presented to the Dáil. The Minister for Finance must be a member of the Dáil. The Comptroller and Auditor General is nominated by the Dáil and reports to it.
Article 17.2 of the Constitution provides that the Dáil may appropriate public funds on the recommendation of the government. Only the government may introduce bills involving public expenditure, involving the appropriation of revenue and other public monies. Only the government or its members may introduce a bill that imposes or increases a charge/
The Constitution provides that the State shall not be bound by any international agreement involving a charge on public funds unless its terms have been approved by Dáil Eireann. This is generally understood to refer to agreements with international bodies or agreements between States and international organisations rather than private agreements..
Power to Tax
The Dail has preeminence in relation to money bills. It is implicit in the constitutional scheme that the Dail has power to raise taxes. It appears that the Oireachtas does not have power to delegate its tax-raising powers.
Under the Provisional Collection of Taxes Act, a resolution of the Dail is used to give effect to budget measures pending enactment of the Finance Act. They are deemed to have statutory effect as if contained in an Act of the Oireachtas for the limited purpose provided thereunder. The budget is given effect by resolutions of the Dail, pending enactment of the Finance Act.
Local authorities may raise taxes by way of rates but are authorised by statute so to do. They also have the power to charge service charges. They are to receive a certain quantum of local property tax.
The State has the power to borrow to meet capital and current expenditure requirement. The National Treasury Management Agency manages the State’s debt, subject to directions of the Minister for Finance. The National Development Finance Agency Act is charged with raising finance for significant infrastructure projects and in establishing public-private partnership arrangements.
The State may charge for services supplied to the public. This may be deemed a tax unless it is directly related to the cost of provision of the relevant service. It has been held that where a fee is unrelated to the underlying cost, it is in the nature of a tax and must be authorised by legislation.
Appropriation Procdures
All State expenditure must be approved by the Oireachtas. All revenues of the State shall be appropriated for the purposes and in the manner and subject to charges and liabilities determined and imposed by law.
Expenditure on non-voted items arises from  legislation. This included judicial salaries, contributions to the European Union, advances to local authorities and State owned bodies for capital purposes. It is authorised by specific statutes.
At the end of each year, an appropriation Act is passed approving expenditure and other charges. Appropriation Acts cover supply services. It excludes certain non-supply or permanent expenditure which is authorised on a standing basis.
Article 28.4.4 requires the government to prepare estimates of receipts and estimates of the expenditure of the State for each financial year. They are to be presented to the Dáil for consideration. Article 17 provides that as soon as possible, after a presentation to the Dáil of the estimates, the Dáil shall consider the estimates.
A White Paper is generally prepared in relation to receipts and estimates and is published before the budget. Ultimately, the appropriation account approves expenditure set out in the estimates. If the Department spends more than allowed under its estimates, a supplementary estimate is required.
The Central Fund (Permanent Provisions) Act 1965 allows the Minister for Finance to issue from central fund sums not in excess of 4/5th of the previous year’s estimate for each department.
Public Accounts Committee
The Public Accounts Committee of the Dáil has a central role in monitoring public expenditure. It is generally shared by an opposition TD. It comprises of non-governmental, members of the government are not members, Ministers of State or members of the government are not members. It is to be impartially representative of the Dáil.
The Committee examines and reports to the Dáil on public expenditure and public accounts. It may suggest alterations and improvements.
The Dáil has the power to summons persons and accounting officers in Departments and governmental bodies and seeks relevant papers.
The Comptroller and Auditor General
The Comptroller and Auditor General is provided for by Article 33 of the Constitution. He is to exercise control on behalf of the State of all disbursements and to audit all accounts of monies administered by or under the authority of the Oireachtas. The Comptroller and Auditor General is appointed by the President on the nomination of the Dáil. He may be removed from office only in the same circumstances as apply to superior court judges.
The Comptroller and Auditor General reports to the Dáil, annually, in the year after the appropriation accounts. The Comptroller and Auditor General may be authorised by Dail resolution under the Comptroller and Auditor General and Committees of the Houses of the Oireachtas (Special Provisions) Act to carry out investigations on expenses in relation to and investigations in relation to matters which the Dail has directed, where there is a risk to public monies.
The Comptroller and Auditor General audits the accounts of public accounts,. This includes conventional auditing and checking that they give a true and fair view of the underlying transactions. Systems are also reviewed in accordance with conventional auditing practice.
Challenges to Tax and Use Public Funds
Attempts to challenge taxes have generally failed on the basis that these are matters of distributive justice for the Oireachtas. In Madigan v Attorney General, an attempt to challenge the former residential property tax invalid was rejected.
A challenge to restrictions on write-offs in respect of car use for salesmen, because that discriminated against persons who had to use a car in the course of employment, was rejected.
The courts have been willing to invalidate revenue laws on the grounds of breach of equality protection and on the grounds of failure in the  State’s obligation to provide for the position of the family.
In rh McKenna case, the government’s decision to use public funds in support of a constitutional referendum was held to be invalid. It was ultra vires the State to seek amendments to the Constitution. The High Court so held. Supreme Court proceeded in the same way on the grounds of equality between the proponents and opponents of the referendum.
In Kennedy v Hearne and Deignan v Hearne, it has been held that the Revenue Commissioner’s power to raise assessments, was constitutional. This is so, notwithstanding that the assessment creates a legally enforceable liability.
The State has the power to attach revenue assessments to accounts and by way of execution to revenue sheriff. In Orange v Revenue Commissioners, the constitutionality of this provision was questioned but not decided.
In Pringle v Government of Ireland, the European Stability Mechanism adopted pursuant to Article 29.10 providing permanent financial stability mechanisms. A challenge to Ireland’s commitment to provide funding without a referendum was rejected.