Roads, houses and water: Ireland's biggest ever infrastructure plan to be announced today
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.
It is not yet known how much money will be spent on each priority.
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 the final details of the spending plan.
Much of the discussion centered around housing yesterday, with increased funding for the delivery 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.
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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.
October's budget
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 savings 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 poses a threat to Ireland's economic model, ministers will be told today.
The finance minister, in publishing the SES today, will state that the government is in a good position to tackle these challenges head on.
Budget 2026 will deliver taxation measures
Budget 2026 will see additional public spending and taxation measures delivered, it is understood, with the government's budgetary strategy being threefold this year:
to increase investment in productivity-enhancing public infrastructure such as water and energy
to continue to improve public services
to build-up financial resources to guard against future shocks.
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Minister says 'sensible decisions' will be made by Govt on how to spend €13bn Apple tax money
Hospitals, trains, millions of Oasis tickets: Nine ways Ireland could spend its Apple billions
The government plans 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 focussed 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 that 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 aging population and other challenges will also need to be factored in.
Much of the focus is on corporation tax take, with the Department of Finance warning last year that the concentration had increased, with €1 euro in every €7 coming from just ten companies last year.
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Extra.ie
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