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Direct Rule and the Governance of Northern Ireland$
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Derek Birrell

Print publication date: 2009

Print ISBN-13: 9780719077579

Published to Manchester Scholarship Online: July 2012

DOI: 10.7228/manchester/9780719077579.001.0001

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Finance and public expenditure

Finance and public expenditure

(p.143) 8 Finance and public expenditure
Direct Rule and the Governance of Northern Ireland

Derek Birrell

Manchester University Press

This chapter examines the financial arrangements and public expenditure in Northern Ireland under direct rule. The key aspects of the public expenditure process under direct rule were not subject to major change. Some of the distinctive features of the financial processes had been retained including the Northern Ireland Consolidated Fund, the clearly identifiable income and expenditure, the Northern Ireland block grant from the Treasury and the Barnett formula. The most important change which came about with direct rule was the abolition of almost all the special arrangements for giving financial assistance and their replacement with a general grant-in-aid from the Secretary of State to the Northern Ireland Consolidated Fund. The direct rule administrations also increased public expenditure and the size of the Treasury subvention which led to higher outlay per capita expenditure than England, Scotland and Wales.

Keywords:   financial arrangements, public expenditure, Northern Ireland, direct rule, Consolidated Fund, block grant, Barnett formula, financial assistance, grant-in-aid, Treasury subvention

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