Ireland's National Development Plan: A €200 Billion Spending Plan for the Next Decade

The Irish government has outlined a €200 billion National Development Plan for the next decade, focusing on spending and tax cuts. The plan targets various areas, including foreign investment, and the likely impact on the economy. A €9.5 billion spending and tax package has also been signalled for this year's budget. Experts discuss the plan's implications on Ireland's future.

The Irish government has unveiled a €200 billion National Development Plan (NDP) for the next decade, marking a significant commitment to infrastructure spending and economic growth. The plan, announced on July 22, 2025, aims to address the country's infrastructure deficit and support housing delivery through investments in energy, water, and transport.

The revised NDP, which covers costs out to 2035, includes €165 billion allocated to the current plan, bolstered by a €14 billion windfall from Apple tax, proceeds from the sale of the State’s stake in AIB, and funds from the Infrastructure, Climate and Nature Fund [1]. The additional €34 billion allocated to health and housing brings the total to €102.4 billion for the period 2026-2030 and another €100 billion for the years 2030-2035 [2].

The plan allocates €40 billion for housing, €24 billion for transport, and substantial investments for energy and water infrastructure. Minister for Public Expenditure Jack Chambers stated that the plan will help "bridge the infrastructure deficit we have in the Irish economy" [1].

In addition to the NDP, the government will publish the Summer Economic Statement (SES) today, which outlines the parameters for October’s Budget. The €9.4 billion budgetary package, comprising a tax package of €1.5 billion and a spending package of €7.9 billion, reflects a more cautious approach to spending [2].

The Apple tax windfall, which amounted to almost €14.25 billion, will partially fund this massive spending plan. The Apple escrow account was closed in May 2025, with the total sum transferred to the Exchequer [1].

The Irish government's cautious approach to this year's budget is a response to global trade turmoil and the threat of US tariffs. The plan for the €9.4 billion budgetary package is more focused on capital investment to address the country’s infrastructure gaps, reflecting the government's determination to meet and overcome the challenges it faces [2].

The €200 billion NDP and the associated infrastructure investments are expected to create more jobs and houses for young people, as well as keep the country secure in turbulent times. The government aims to balance investment in public infrastructure with the need to maintain the long-term sustainability of the public finances [1].

References:
[1] https://www.thejournal.ie/200-billion-national-development-plan-6769181-Jul2025/
[2] https://www.irishtimes.com/ireland/2025/07/22/national-development-plan-live-updates-infrastructure-housing/