The Government is expected to spend up to €1.5 billion on budget day on childcare, social welfare and new roads, following the publication yesterday of the 2006 Estimates.
State spending will rise next year by €3 billion, or 7 per cent, to about €48 billion, including a 9 per cent increase in the health budget and 7 per cent in the spending of the Department of Justice, Equality and Law Reform.
Producing the Estimates, Minister for Finance Brian Cowen emphasised that extra budget day spending would be centred on social welfare increases, improving the care for the elderly and on infrastructure.
The Government would also improve childcare services, although on the latter he warned that "there is no magic wand that will sort this out" and that working parents and stay-at-home parents would have to be treated equally.
Mr Cowen unveiled details of spending plans worth €48.5 billion ahead of his December budget. He said spending on health was to rise by 9 per cent to €12 billion, while spending on education would rise 7.9 per cent to €7.2 billion. The Government is to spend €12.4 billion on its social welfare package and an extra €3 billion on public services.