Ireland is entering an era of extraordinary public spending. In a single day, two major economic documents were published: the Summer Economic Statement (SES), which outlines short-term budgetary plans for 2026, and the revised National Development Plan (NDP), focused on long-term infrastructure investment. While the numbers are certainly ambitious, they also raise difficult questions around delivery, oversight, and fiscal sustainability.
The revised NDP
Minister Jack Chambers announced an updated NDP with a total projected investment of €275.4 billion over the period 2026 to 2035, including €102.4 billion in capital spending allocated between 2026 and 2030. The review adds €34 billion compared to the previous 2021-2030 plan.
The largest allocations include:
- €36 billion for housing, split into:
- €28.3 billion for housing delivery
- €7.7 billion for water infrastructure
- €22.3 billion for transport
- €9.3 billion for health
- €7.6 billion for education
- €5.6 billion for climate, environment, and energy
The government has described the revised NDP as a “landmark moment” and the largest capital investment in the State’s history. It is intended to address persistent gaps in infrastructure and public services that have struggled to keep pace with Ireland’s rapid economic and demographic growth.
However, specific project priorities have yet to be announced by individual ministers and departments, and timelines for delivery remain unclear. How the government intends to accelerate delivery in sectors already facing capacity constraints is a key outstanding question.
Summer Economic Statement
The Summer Economic Statement outlines a €9.4 billion budgetary package for 2026, to be formally announced on 7 October. It includes:
- €7.9 billion in additional spending
- €5.9 billion for current expenditure
- €2 billion in capital expenditure
- €1.5 billion in tax cuts
However, the SES is based on a set of optimistic assumptions, most notably that no new international tariffs will be introduced, despite growing expectations that a 10% blanket tariff may become the new baseline. The SES also cautions that Ireland’s headline public finance figures may be misleading. Excluding volatile windfall corporation tax receipts, the country would be running a budget deficit of nearly €11 billion. This casts serious doubt on the sustainability of continued fiscal expansion.
Conclusion
If implemented effectively, sustained public investment offers a real opportunity to address Ireland’s longstanding infrastructure deficits. What happens next remains to be seen. With the Dáil now in summer recess until 17 September, when it returns, attention will turn to Budget 2026. The real test will be whether these ambitious commitments can be translated into credible, deliverable outcomes.
