Plans to invest some €200 billion in Ireland’s infrastructure over the next decade are set to be unveiled on Tuesday but Ministers will also be warned about the need to rein in current spending as preparations ramp up for this year’s budget.
The Government will seek to “transform” Ireland’s infrastructure over the next decade with housing, water, energy and transport prioritised for investment under the revised National Development Plan (NDP).
Meanwhile, the summer economic statement (SES) – which will set out the scale of the budget’s likely tax and spending package in advance of talks with Ministers – is also set to be published on Tuesday.
The updated NDP and preparations for this year’s budget come against a backdrop of considerable economic uncertainty amid the ongoing threat of a trade war between the European Union and the United States.
READ MORE
The Irish Times understands that as part of the SES Minister for Public Expenditure Jack Chambers will be reminding colleagues of the need to “moderate” spending.
This has spiralled in recent years as governments responded to economic shocks including Brexit, the Covid-19 pandemic and the cost-of-living crisis.
With the one-off cost-of-living measures of recent years also not expected to feature in the forthcoming budget, Ministers are also expected to be told that there is a need to switch from short-term measures to targeted, sustainable and permanent measures to support households.
A Government source said both Mr Chambers and Minister for Finance Paschal Donohoe will highlight the threat of trade tariffs as part of the SES, which will outline “the need to enhance competitiveness by investing in critical capital infrastructure”.
The Coalition leaders and senior Ministers met over the weekend and funding allocations in the NDP for most departments have been agreed.
Negotiations were on Sunday said to be continuing in relation to spending on the key priority area of housing.
Mr Chambers confirmed on Sunday that up to €30 billion in additional funding is set to be added to the NDP, up from a previously mooted sum of about €20 billion extra, bringing the overall sums to be spent over the next five years to almost €100 billion.
He said the Government will also set out a trajectory for another €100 billion in investment over the following five years from 2030.
Mr Chambers told RTÉ radio the extra €10 billion being set aside for use between now and 2030 is for “specific strategic investment” including for improving the electricity grid, water infrastructure and Dublin’s MetroLink rail project.
