Reuters/Dublin

Ireland yesterday unveiled a six-year 27bn euro ($30.3bn) capital investment plan, increasing spending from scaled-back levels 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. But it plans to increase it again with the government finances back under control and economy growing faster than anywhere in Europe.
It will spend an average of 4.5bn euros a year until 2021 - compared to the average 3.5bn spent 2011 and 2014 - on projects ranging from a rail line linking Dublin airport to the city centre and the replacement of ageing schools.
“We regard this programme 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.
Capital spending reached a peak of 10bn euros - or over 5% of annual economic output - in 2008 before the ‘Celtic Tiger’ boom years and the period of unsustainable government spending it fuelled ground to a halt. Spending on infrastructure was subsequently cut at a sharper pace than spending by government departments and the government said yesterday that capital spending would gradually increase from 3.8bn euros next year to 5.4bn euros in 2021.
Almost a third of the planned spending will go to transport projects, as economic growth and rising employment rates are putting pressure on public transport and increasing traffic in urban areas.  The government has until March to call an election, but with opinion polls putting the coalition within striking distance of re-election, members of parliament and party strategists say a November ballot is being considered.