DUBLIN, (Reuters) – On Monday, Ireland presented a capital plan of 165 billion euros ($192 billion), which the fiscal watchdog for Ireland said would raise public investments to the highest level in the OECD. However it also posed risks due to the country’s high levels of debt.

The July budget decision by the government was to reduce its deficit quickly accumulated during COVID-19’s pandemic, more gradually than anticipated. This is in contrast to plans to spend more in areas like housing and climate change.

Monday’s plan will increase exchequer capital spending to 16.4billion euro in 2030. This is an increase from 9.8billion euro this year, and 3.4billion euros in 2013. In 2013, investment rates were cut to one of Europe’s lowest after the financial crisis.

According to government, this means that national income will be greater than 5% by 2024 and continue through the decade.

Housing will receive almost one third of all funding through 2025. Transport projects get 21% of that money. Another 17% is allocated to health and education.

Last month, the Irish Fiscal Advisory Council (IFAC), which warned that the government’s budget plans are “at the limit” of prudent spending, stated that capital expenditure should be increased to address bottlenecks and still enjoy low interest rates.

But it warned it has risks.

Risks are posed by the rapid increase in investment, as well as the fast rise in spending. “Capacity limitations in construction may also lead to higher costs for delivering investments,” IFAC stated on Twitter (NYSE :), highlighting high levels of debt.

Ireland’s debt to GDP ratio reached 104.8% in 2020. This is up from 94.7% at 2019.

According to the finance ministry, in July it was forecast that it will remain at 106% through 2025 and not begin to drop back to prepandemic levels. However ministers later indicated it would fall below that because of Ireland’s fast economic recovery.

($1 = 0.8603 euros)