Revised NDP will see increase in defence spending, minister says

By Cillian Sherlock, PA

Increased spending on defence is envisaged within billions of additional funding on infrastructure under a revised National Development Plan (NDP).

The revised NDP, which will be announced on Tuesday, will include up to €30 billion in additional capital expenditure for infrastructure projects over 2026-2030.

Public Expenditure Minister Jack Chambers, who is responsible for the delivery of the NDP, said Government would be setting out a “trajectory” of €200 billion in spending over the next 10 years to “help bridge the infrastructure deficit we have in the Irish economy”.

That deficit is acting as a key constraint on the delivery of critical areas to the economy like housing.

Mr Chambers had previously said €20 billion was available to allocate across critical areas in the economy, with the Government identifying housing, energy, transport and water infrastructure as priority areas.

Asked on Sunday where the additional €10 billion for the short-term plan to 2030 had arisen, he said the Government is prioritising capital investment in its medium-term economic planning.

He explained the €10 billion had been ringfenced for “specific strategic investment”, such as the electricity grid, water infrastructure and the Dublin metro project.

Pressed on the timeline for the metro project, the deputy leader of Fianna Fáil said it would be dependent on the planning system.

Meanwhile on transport, Mr Chambers said the Government is no longer “governed” by the 2:1 ratio of public transport to roads which was a feature of the previous coalition.

Speaking on RTÉ's This Week radio programme, he said the revised NDP would contain a “major uplift” in commitments to public transports, road projects and active travel.

“But we also need to ensure that in regions across our country – whether it’s in the west or the south-west or elsewhere – that roads projects which have been on the table for many years are progressed.”

Asked if this would include road projects in the constituencies of independents which supported the Programme for Government, Mr Chambers said it would not set out a list of particular projects and the focus was on driving delivery.

However, he said Transport Minister Darragh O’Brien would have “flexibility” to “ramp up funding” for road infrastructure, as well as public transport projects.

Mr Chambers also said the profile of defence spending is set to increase, adding Tánaiste and Defence Minister Simon Harris would provide further details on the specifics after Tuesday’s announcements.

Meanwhile, the Government is also set to outline its Summer Economic Statement, which sets out the expenditure package for the Budget.

The Public Expenditure Minister said: “We’re approaching budget 2026 with significant caution.

“We have serious economic uncertainty surrounding our country, but we are coming at this from a position of real strength.”

He said Government would be seeking to moderate the level of increases in current expenditure.