Almost one-third of State IT projects launched in the past two years have exceeded their budgets or are expected to do so, according to findings set to be examined by the Dáil Public Accounts Committee (PAC) on Thursday.
The review, carried out by the PAC, follows scrutiny of a series of high-profile digital failures, including the collapse of a €6.7 million IT system commissioned by the Arts Council of Ireland, which was ultimately abandoned after development work had already been completed.
Out of 220 IT initiatives undertaken by government departments and State agencies since the beginning of 2024, 34 completed projects went over budget, while a further 33 ongoing schemes are also forecast to exceed their allocated spending limits.
Seventeen completed projects recorded overspends of more than 10 per cent. In total, gross overspending across the system reached €40 million, although savings in other projects brought the net overspend down to €1 million.
Despite the relatively small net figure, PAC members have raised concerns about repeated cost overruns and governance weaknesses across major public sector digital programmes.
One of the most closely examined cases is the National Transport Authority’s Next Generation Ticketing project, which aims to introduce contactless payments across buses, trains and trams in the Greater Dublin Area by 2028. The system is intended to allow passengers to pay using bank cards, smartphones and other digital devices.
According to correspondence submitted to the committee, €12.9 million had already been spent by last August on the project, which began in 2021. The total estimated cost now ranges between €228 million and €269 million.
Sinn Féin TD John Brady, who chairs the committee, said the limited progress reported to date was “particularly alarming,” given the scale of public funds involved. However, the National Transport Authority has defended its governance processes, stating that its latest external audit rated its controls as “substantial.”
Other cases highlighted include the cancellation of a €4.3 million Fiosrú case management system project linked to the Garda Ombudsman, of which nearly €500,000 had already been spent before it was halted due to contractual issues. The Department of Justice Ireland said the project is now under review to ensure value for money.
A DNA information management system for Forensic Science Ireland also saw its cost rise from an estimated €760,000 to €2.7 million upon completion, with officials citing underestimated complexity and resource requirements.
An ICT system for affordable childcare similarly exceeded its original budget by €3.5 million, or 49 per cent, reaching a final cost of €10.6 million. The Department of Children, Equality, Disability, Integration and Youth said initial estimates failed to fully capture technical requirements.
PAC members warned that the findings point to wider systemic issues in public sector project delivery, including weak oversight, gaps in expertise and recurring failures in cost estimation and project management. The committee said it would continue to monitor major IT investments closely going forward.
