Housing, health, military: What does the National Development Plan mean for Govt spending?
Eva Osborne
Details of the National Development Plan were announced on Tuesday, outlining Government spending on infrastructure for the next decade until 2035.
There will be a total investment of €275.4 billion over the period 2026 to 2035, with the Government deeming it the largest ever capital investment plan in the history of the State.
Taoiseach Micheál Martin said the review is significant in addressing Ireland’s infrastructure needs.
“This NDP Review is a landmark moment for Ireland’s future. With a record €275.4 billion in public capital investment, we will deliver the infrastructure that will help us meet the economic and social needs of the Irish people for generations to come," he said.
The money, made up of the Apple tax, sale of AIB shares, and other State funds, will also be put towards areas like public transport and electricity services.
Housing and energy
Public Expenditure Minister Jack Chambers said housing is the main priority.
€36 billion is being provided to 2030 for housing - not including investment in water.
"Between wastewater infrastructure and supports for the Department of Housing, that will be in and around €40 billion of the €100 billion which we're announcing today," Chambers said.
"And really we're commiting, as a Government, to driving the delivery of social affordable homes but also that critical infrastructure which underpins housing supply right across our economy."
The Government said improvements to critical sectors of economic infrastructure have been prioritised to support the core ambition of the review, which is to deliver 300,000 additional homes by 2030 and boost Ireland's competitiveness.
A total of €3.5 billion in equity has been earmarked for energy projects with ESB Networks and Eirgrid to meet the growth to deliver on the housing target of 300,000 new homes.
€3.5 billion in equity funding is being provided to ESB and Eirgrid in 2025 to fund enhanced energy grid capacity to support the Government’s housing and competitiveness objectives.
The Government is increasing its equity shareholdings of both ESB Networks and EirGrid, to provide for regulatory requirements, meet the growth to deliver on the housing target of 300,000 new homes and support necessary investment for Ireland’s competitiveness.
The Government said a total of €3.5 billion in equity has been earmarked for these energy projects and is available for drawdown when required.
Military spending
This revised NDP has provided the largest ever rise in military spending, according to Martin Wall of The Irish Times.
The Defence Forces is to receive about €1.7 billion in new capital investment under the revised NDP.
The new funding will be focused on the introduction of new primary radar systems to identify aircraft in Irish skies as well as sonar equipment to detect objects under the sea.
Cost-of-living
It was made clear ahead of time that once-off cost-of-living spending will be cut, to allow for funding for long-term capital projects.
Finance Minister Paschal Donohoe said the Government appreciates people are struggling, but said potential tariffs are posing a threat.
"Given how uncertain the economic environment is, we do have to make choices," he said.
"We have to prioritise investment in that which can support our country continuing to grow, while at the same time accompanying that with measures that we're confident we can afford but will be permanent."
Health
The health service is to receive €9.25 billion in funding under the Government’s revised National Development Plan, according to The Irish Times.
Minister for Health Jennifer Carroll MacNeill had sought funding for a programme of digitalisation in the health service including the introduction of electronic patient records. This was expected to cost about €2 billion.
Transport
€24.3 billion has been allocated for the transport sector, including low carbon transport projects such as Metrolink.
The Government has identified the need to provide support for the development of low carbon transport projects such as Metrolink before 2030.
Given the unique scale of the Metrolink, the Government said it has decided to fund it from the Infrastructure, Climate and Nature Fund.
"The funding approach will allow the ambitious pipeline of other public transport projects."
Climate
The Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024 (“the Act”) was enacted in July 2024 and established the ICNF.
The purpose of the ICNF is to seek to manage the pro-cyclicality of public spending and to assist with climate change objectives and with addressing nature, water quality and biodiversity issues.
A total of €2 billion will be invested in the ICNF each year from 2024 to 2030, building up to an overall fund of €14 billion, the Government said.
Water
€12.2 billion has been allocated for the water sector for water and wastewater services.
€2 billion in equity funding is being provided to Uisce Éireann in 2025 to enable the delivery of 300,000 additional homes to 2030.
A further €2.5 billion in funding is being provided to Uisce Éireann for large scale projects over the period to 2030. These funds are available and ready for drawdown when required.
The Government is leveraging wider funds held to increase capacity for water infrastructure and Uisce Éireann services. An additional injection of €4.5 billion has been provided specifically for water services, on top of the NDP provision.
Across all sources, including the NDP investment, a total of €12 billion has been released and earmarked specifically for critical water infrastructure investment.
