ieExplains: What are the summer economic statement and the National Development Plan?

Budget 2026 will be unveiled on October 7 with an overall package worth €9.4bn

(left to right) Tánaiste Simon Harris, Taoiseach Micheál Martin, and Seán Canney, Independent TD for Galway East, speaking at the launch of the summer economic statement. Photo: Niall Carson/PA

The Government has unveiled two of its key signposts on the long road to Budget 2026: The summer economic statement (SES) and the updated National Development Plan (NDP).

The SES essentially sets out the broad parameters of the upcoming budget, while the NDP outlines what the Government is planning to spend on major infrastructure projects over the next five years.

Budget 2026 itself will be unveiled on October 7 with an overall package worth €9.4bn.

What exactly is the summer economic statement?

The SES is an early look at the total amount of money the Government is planning on adding to its spending plans for the year ahead. Finance minister Paschal Donohoe and public expenditure minister Jack Chambers confirmed the total size of Budget 2026 would be €9.4bn. 

Minister for public expenditure Jack Chambers, left, and minister for finance Paschal Donohoe confirmed the total size of Budget 2026 would be €9.4bn. Photo: Niall Carson/PA

Of this, €1.5bn is to be spent on tax measures. The remaining €7.9bn will go on new measures, which will include current and capital spending. This breaks down to €2bn towards capital spending, while the remaining €5.9bn will be provided for current spending.

Does it set out what the money will be spent on?

No, it doesn’t. This will be done in the October budget, when Mr Donohoe and Mr Chambers stand up in the Dáil and formally announce exactly what programmes will be funded and what taxes will be cut.

Over the summer months, Government ministers will begin setting out their stall for what goodies they want to prioritise in the Budget. Direct negotiations between Cabinet ministers and Mr Chambers will begin in earnest in September.

Any concerns this could change?

Yes. The Government is warning it may need to reduce the size of the overall budgetary package if there is “deterioration in the tariff landscape”. This means, if US tariffs on EU goods are higher than expected, the Government may opt for a smaller tax and spending package.

What about the National Development Plan?

This is setting out the total amount of money the Government intends to spend on capital projects and infrastructure over the next five years. In total, a package worth €102bn has been agreed, with significant amounts provided to housing, water, energy and transport.

Does it include details of any specific projects?

Very scant details, with the only major project getting a specific mention being Metrolink. The Government confirmed it would be providing €2bn worth of funding from the Infrastructure, Climate and Nature Fund to progress low-carbon public transport projects — particularly focusing on Metrolink. 

It is instead setting out where the funds will go over the next five years, with well over half provided to housing and transport.

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While only Metrolink is directly mentioned, there are breakdowns in some aspects of the funding allocation. In the Department of Housing, €7.6bn is to be allocated between 2026 and 2030 for water infrastructure, while the remaining €28.2bn will go towards housing. 

Taoiseach Micheál Martin signalled individual projects will be identified by ministers and revealed closer to budget day in October.