Dáil Éireann Debate, Thursday - 26 October 2023
42. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the basis on which he decided to increase capital expenditure by only €250 million in 2024, given the large surpluses in the public finances; and if he will make a statement on the matter. [47028/23]
Amharc ar fhreagraThe Government has committed €165 billion to capital investment through the National Development Plan (NDP) published in 2021. As a percentage of national income, annual capital investment is now among the largest in the EU.
In Budget 2024, I allocated an additional €900 million in 2024 over the 2023 capital allocation for essential investment in providing more schools, hospitals infrastructure and for better public and road transport. This will bring total core capital investment in 2024 to €12.6 billion. This represents an increase of approximately 8 per cent, in line with the National Development Plan (NDP). The overall level of capital funding is now at an all-time high, with a commitment to further increase investment in capital projects and programmes over the lifetime of the NDP.
As outlined in the Summer Economic Statement, additional capital of €250 million is also being made available for 2024 from windfall exchequer receipts, to be allocated to critical infrastructure projects that are at an advanced stage and to the existing Climate Action Fund. Recognising the capacity constraints in the economy, it is intended that the additional funding will be targeted at projects that are ready for development. This would include the consideration of which sectors have been able to utilise existing NDP allocations in recent years and who have a good track record of delivery.
Including the €250 million in 2024, this raises the overall increase in capital investment in 2024 to just over 10 per cent above 2023 funding. This is a significant amount, greater than the overall growth for total expenditure, and is considered sustainable when weighted against other constraints in the economy.
