An additional €2.25 billion has been earmarked for projects in the National Development Plan (NDP) up to the end of 2026 as the Cabinet approved funding, in part, to help offset the impact of construction cost inflation.
Minister for Public Expenditure Paschal Donohoe denied the allocation of the funding was linked to the timing of the next general election.
The Government said the funding will facilitate the progression of important projects and enable more rapid development of key Coalition commitments like delivering on the Climate Action Plan and providing more housing and schools.
Transport projects to be supported with the funds include Dart+, BusConnects and Cork commuter rail.
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There is to be additional investment in social and affordable housing programmes and more hospital beds.
Updated capital spending ceilings for 2024 (€13 billion, up €250 million), 2025 (€14.35 billion, up €750 million) and 2026 (€15.45 billion, up €1.25 billion) were published.
The increased funding comes after a Government review of the NDP, with Mr Donohoe saying he worked closely with ministers to reach agreement on the best way to distribute the funds.
At a press conference, he denied the announcement was linked to the timing of the next general election which must take place by March 2025 at the latest.
He said: “you can’t read anything into this”, adding that the work to allocate additional funding for the NDP was announced on Budget day last year and it “doesn’t make any difference to whenever the election is going to be”.
Mr Donohoe said: “We have a whole variety of important projects over the country that were going to be more difficult to move ahead because of the rising cost of construction due to inflation.
“We also have a number of other projects that we have to deliver for example, new school buildings, progress in building more hospital beds.
“This project had to be completed to allow that to go ahead.
“We brought it to conclusion today.”
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