Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The total level of Exchequer investment is currently under consideration as part of the ongoing review of the NDP, as the Deputy is aware. The overall level of capital expenditure in 2021 stands at €10.1 billion, or almost €11 billion when capital carry-over is included. This represents a share of 4.7% of GNI*, well above the EU average in recent years of around 3% of GDP. This allocation is almost €5.5 billion or 119% higher than the amount allocated in 2017. In other words, capital allocations have already more than doubled under the NDP. The Deputy will be very familiar with that, given his role in the previous Government. It is also an all-time high in the history of the State, with a commitment to maintaining and further increasing it over the lifetime of the Government. This is in spite of the major challenges facing the Exchequer due to the impacts of Covid-19 and Brexit.

It is also important to note that pre-pandemic, Ireland's level of public debt per capitawas one of the highest in the developed world. This has increased as a result of our response to the crisis. That response was necessary and remains appropriate in my view. Total government debt is now approaching one €250 billion, or 112% of GNI*.

I note that the ESRI report states that the Irish Exchequer would be able to raise between €4 billion and €7 billion each year in additional resources for the State. The paper also notes that this would generate sizeable challenges in terms of efficient delivery. As part of the analytical processes underpinning the NDP review, a macroeconomic analysis has been conducted as to the appropriate level of capital expenditure for the period 2021 to 2030. It considered a number of factors, including the overall fiscal position, demand for investment, supply side capacity constraints in the public and construction sectors and international comparisons.

All of those factors need to be considered and balanced against each other as part of the national development plan review when setting the planned level of public capital investment for the period 2021 to 2030.

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