Budget 2027 allocates an additional €1.76bn to health, which is a 6.4% increase on the 2026 allocation. This brings total allocated health expenditure for 2027 to €29.1bn, nearly a quarter of gross voted government expenditure. The budget has been framed around better use of existing resources, opening new capacity, and continuing reform.
Core themes include: a shift of investment growth with community growing faster than acute and capital growing faster than current; significant investment in digital health; substantial productivity improvements being essential to sustainability; new developments focusing on preventative care; pay funding growth supporting wage increases rather than a bigger workforce.
The key points
- A larger budget, with significant capital growth. The total budget increase of €1.76bn is split into €1.6bn for current expenditure (up 6.2%) and €160m capital expenditure (up 10.3%).increase includes the 2026 overspend and only €367m is tied to new measures. The €430m (4%) rise in the pay bill funds pay agreements, not additional staff.
- A partly pre-committed budget. IFAC believes the 2026 overrun could be close to €1bn. They point to this meaning that the additional current expenditure will be c.€0.7bn in 2027 versus what will have been spent (rather than allocated) in 2026. Note – there is nonetheless a €1.76bn increase on money allocated in budget 2026 versus 2027.
- Community grows faster than acute. There is an explicit commitment to this approach, backed up by a range of community-based measures. These include +1.8m home support hours, +€2m for Meals on Wheels , more cancer care in community settings, four new Jigsaw youth mental health services and more community and mental health beds.
- Targeted new developments. Not all new measures are costed individually in the budget. For those that are, the new development funding is €367m. This is allocated as follows: €196m for older persons and home support; €108m for mental health and ADHD; €36m for prevention and inclusion; €18m for children’s oral health; €7m for GP out-of-hours and €2m to extend free contraception to age 37.
- An efficiency levy. Health carries €175m (39%) of the overall €446m efficiency levy.
- Shift from NTPS to HSE. Funding for the National Treatment Purchase Fund (NTPF) falls 25% to €150m.
- Growing role for the regions. €17.2bn, or 59% of health spending, will be directed through the six HSE health regions. This provides an opportunity to update regional models of care to meet local population needs.
- A pivotal year for digital. Health IT expenditure rises 14% to €768m, including funding: continued rollout of the HSE Health App; an expansion of shared care records; advancing ePrescribing; advancing a national Electronic Health Record.
For a summary of Ireland’s 2027 Health Budget, click here.
Sources: Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Budget 2027 Expenditure Report (6 October 2026): Part I, Chapters 1–3; Part II, Chapter 12 Health; Part III, Vote 38 Health and Capital Investment Allocations 2026–2030. Department of Health, Budget 2027 press release (7 October 2026). Minister for Public Expenditure, Budget 2027 speech. Irish Fiscal Advisory Council, Budget 2027 Flash Release.
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