Until 2005-06 departmental expenditure limits only included the expenditure element of EU structural funds and additions were made to the Wales departmental expenditure limit beyond the Barnett Formula. The receipts were paid separately to the National Assembly for Wales and were therefore identified separately in the calculation of the block grant.
From 2006-07 the budgeting arrangements for EU receipts changed and departmental expenditure limits were expressed net of EU receipts. Thus no deduction is now necessary. The receipts continue to be paid into the Welsh Consolidated Fund and are additional to the block grant.