The Government will remain silent until October regarding the specific projects slated to benefit from the reviewed National Development Plan. This plan outlines a €200 billion investment in infrastructure over the next decade.
Public Expenditure Minister Jack Chambers is scheduled to unveil the updated plan following Tuesday’s Cabinet meeting, concluding several weeks of intense negotiations.
The revised plan will see approximately €200 billion invested in major projects over the next 10 years. Of this, €100 billion is earmarked for the next five years to address existing deficiencies in vital water and energy infrastructure hindering the construction of new homes.
Key aspects of the updated National Development Plan include: an additional €30 billion allocation for projects in the next five years, raising total spending to €100 billion; a further €100 billion in infrastructural investment between 2030 and 2035; a “ringfenced” €10 billion dedicated to electricity grid upgrades, water infrastructure improvements, and transport projects such as the Dublin Metrolink; the “largest single investment” ever made in the national electricity network; and a “major increase” in defense spending over the coming five years.
The National Development Plan, originally launched in Cork in 2021, is undergoing revision due to significant recent revenue increases, including the €14 billion Apple tax windfall following the European Court of Justice ruling last September, and the proceeds from the sale of the State’s remaining AIB shares.
Despite earlier expectations that the plan would be finalized by the Coalition leaders, including Taoiseach Micheál Martin and Tánaiste Simon Harris, at a morning meeting, negotiations were ongoing late into yesterday evening.
Specifically, discussions related to housing were delaying the finalization of the review.
Sources emphasized that the announcement will present a “review” of the existing plan, rather than a full unveiling of a new development plan with explicit project details. Mr. Chambers will announce the new capital allocations for each department on Tuesday.
However, specific project details outlining how each department will utilize its allocation are not anticipated to be disclosed until Budget Day in October, representing a delay of three months.
It is understood that Mr. Harris, who also serves as Minister for Defence, has successfully secured an increase in defense spending for the next five years.
He is expected to inform Cabinet that the revised plan represents a “once-in-a-generation opportunity to transform Ireland’s infrastructure,” particularly against the backdrop of current global trade and tariff uncertainty.
He will likely emphasize to his colleagues that accelerating approval processes and reducing bureaucratic obstacles will be crucial for effectively implementing the plan to modernize water, energy, transport, and other critical infrastructure. This modernization is deemed essential to “enable the delivery of new homes, more schools and childcare places, and improved disability services and health outcomes.”
Simultaneously, ministers will be alerted to the necessity of “moderating” day-to-day government spending leading up to this year’s budget.
The Government will release the Summer Economic Statement today, outlining the general parameters of the budget scheduled for October.
While government sources acknowledge available funds for expenditure, the prevailing economic uncertainty necessitates careful management of current spending levels.
Mr. Harris is predicted to inform Cabinet that this year’s document will “differ” from previous iterations and that budgetary decisions “will have to focus on protecting jobs and investment during what could be an economically turbulent period ahead.”
Government sources have expressed concerns that the rise in protectionism, escalating tariffs, and “fragmentation of global supply chains” present a threat to Ireland’s economic model. However, Budget 2026 is projected to include additional public spending and taxation measures.
Last year’s Summer Economic Statement projected approximately €2 billion for additional expenditure and €1.2 billion for tax changes in this year’s budget.
“Government sources said that the focus has been on finding “the right balance between enhancing our public infrastructure, improving public services and maintaining the long-term sustainability of the public finances”.
