IRELAND unveiled a six-year 27-billion-euro (US$35 billion) capital investment plan Tuesday, gradually increasing spending and promising voters rail, broadband and school projects in the run-up to elections.

    Dublin had to sharply cut its capital budget and postpone major projects under an austerity drive that followed its 2008 financial crisis. It plans to increase it again now that government finances are back under control and the economy growing faster than anywhere in Europe.

    It will spend an average of 4.5 billion euros a year until 2021 — compared to an average 3.5 billion a year between 2011 and 2014 — on projects ranging from a rail line linking Dublin airport to the city center by 2027 and the replacement of ageing schools.

    “We regard this program as being within the fiscal space available to us, as being prudent and consistent with the government plan to eliminating borrowing by 2018,” Irish Prime Minister Enda Kenny told reporters, referring to a pledge to deliver a balanced budget in three years’ time.

    Capital spending reached a peak of 10 billion euros — or over 5 percent of annual economic output — in 2008 before the “Celtic Tiger” boom grounded to a halt.

    Spending on infrastructure was subsequently cut at a sharper pace than spending by government departments. The government said Tuesday capital spending would gradually increase from 3.8 billion euros next year to 5.4 billion in 2021.

    Almost a third of the planned spending will go toward transport projects. Economic growth and rising employment rates are putting pressure on public transport and increasing traffic in urban areas, where there is also a dearth of housing supply.

    With the second-lowest infrastructure spending in the European Union but fastest growing population, Ireland will still have an annual investment gap of around 2.5 billion euros, the Irish Business and Employers Confederation estimated.

    (SD-Agencies)