SaltWire Network | Posted: 5 hours ago | Updated: 5 hours ago | 3 Min Read
For many residents this is welcomed news, but if the Furey government truly wants to mark a new era of fiscal management — and deliver ongoing cheques to residents — it should look to Alaska’s Permanent Fund, which has grown to US$65.3 billion while paying more than US$26 billion in dividends to citizens since 1982.
Saving a share of resource revenue in the Future Fund could help mitigate this cycle. Indeed, limiting the amount of resource revenue included in the annual budget constrains the government’s ability to permanently increase spending based on temporarily high resource revenues. To be successful, however, the Furey government should learn from the Alaska experience.
And perhaps most notably, a portion of the earnings from the fund are paid to Alaskan citizens as dividend cheques, which is key to the fund’s success because the annual payment directly links the financial well-being of citizens to the performance of the fund.
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