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LAST UPDATE | 22 Jul
THE GOVERNMENT WILL today map out how it plans to spend €200bn on massive infrastructure projects over the next decade.
The National Development Plan (NDP), which is due to be published after the Cabinet meets this morning, will set out the large-scale infrastructure plans this government and future governments will roll out.
There will be a big focus on housing, the energy grid, water infrastructure, roads, public transport and health facilities that are needed over the coming decade. Defence will also see a boost in funding.
The Journal understands €40bn will be allocated for housing, including water service; €24bn for Transport, with €2bn of this for Dublin’s metrolink; and €3.5bn going to ESB Networks and Eirgrid.
The €40bn for housing includes about 10% special funding for Uisce Éireann, not just core department allocation.
Taoiseach Micheál Martin, Tánaiste Simon Harris, and Minister of State Seán Canney – who represents the Regional Independents in government – met with Finance Minister Paschal Donohoe and Minister for Public Expenditure Jack Chambers yesterday to flesh out the final details of the spending plan.
Speaking today outside Government Buildings, Harris declared that the announcement will be seen as a “moment of transformation for Ireland” because it will bring our infrastructure up to the level expected in the 21st century, lead to more houses and jobs for young people and keep our country secure in “turbulent times”.
Much of the discussion centred around housing yesterday, with increased funding for the delivery of more units understood to be key to the new NDP.
As part of the announcement, the government will also set out how it is going to spend the Apple tax money.
The €14bn Apple tax windfall is being used to partially fund the massive spending plan, along with money from the sale of AIB shares and cash from other State funds, including the Infrastructure, Climate and Nature Fund.
The Apple escrow account was closed in May of this year, with a total sum of almost €14.25bn transferred to the Exchequer.
Apple had originally transferred €14.3bn to the account in 2018 ahead of its appeal against the European Commission decision, which found that the company owed Ireland €13.1bn plus interest of €1.2bn.
In addition to the National Development Plan, the government will also publish the Summer Economic Statement (SES) today, which outlines the parameters for October’s Budget.
While there was a bumper package announced last year, the Taoiseach and ministers have been tempering expectations that this year’s Budget will deliver the same level of cash into people’s pockets.
The threat and uncertainty of US tariffs is making it increasingly difficult to plan for the Budget, the Taoiseach has previously said. The government has already ruled out any once-off cost-of-living measures, similar to those rolled out in previous years.
The increase in protectionism, rising tariffs and the fragmentation of global supply chains pose a threat to Ireland’s economic model, ministers will be told today.
The finance minister, in publishing the SES today, will say that the government is in a good position to tackle these challenges head on.
Budget 2026 will see additional public spending and taxation measures delivered, it is understood, with the government’s budgetary strategy being threefold this year:
The government’s aim is to strike a balance between enhancing public infrastructure, improving public services and maintaining the long-term sustainability of the public finances.
The programme for government commits to increasing capital investment in key areas, while at the same time, continuing to use the resources available to invest record levels of public money across the public service to improve healthcare, education and social protection.
These investments will be made on a permanent basis, rather than the previous once-off measures.
The finance minister will also outline that the government is focused on maintaining the stability of the public finances. He will warn that due to Ireland being a small open economy, the country is vulnerable to external developments.
It is crucial that the country has the resources available to maintain capital investment even in the event of an economic shock, Donohoe will tell ministers. The increased costs associated with an ageing population and other challenges will also need to be factored in, he will say.
Much of the focus is on corporation tax take, with the Department of Finance warning last year that the concentration had increased, with €1 in every €7 coming from just 10 companies last year.
With reporting by Sophie Finn and Jane Matthews
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