The document, authored by the British Government, addresses key financial issues for consideration by participants in the Northern Ireland peace talks, particularly in the context of establishing new democratic institutions. It outlines the existing and proposed arrangements for public expenditure, including the application of the Barnett formula to determine the Northern Ireland block grant. The paper discusses the potential roles of new political institutions in managing public expenditure, including whether they should interact directly with the Treasury or through the Secretary of State. Additionally, it explores the implications of local taxation and other tax-raising powers, comparing them to the arrangements for the Scottish Parliament and Welsh Assembly, and considers the advantages and disadvantages of these financial responsibilities for the new institutions.
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