Spending by the Department of Environment, which includes expenditure on roads, waste services, and housing, will be more than €2.75 billion (£2.1billion) in 2002 - an increase of more than €300 million (£236 million) on the estimates.
The additional funding for national roads brings the total 2002 provision to more than €1 billion.
The money will go towards the Cloghran to Balbriggan section of the M1 as well as the Drogheda bypass and the Dublin Port Tunnel. On the N4 money is being provided for work on the Celbridge Interchange and Enfield bypass, while on the N7 money will go towards the Kildare bypass, and the Watergrasshill by-pass. Work on the Ballincollig bypass in Co Cork and M50 South Eastern Motorway will also be funded.
It will also allow planning to proceed on other major projects on the national road network.
Investment in water and waste water services - another major capital programme funded by the Department of the Environment - will amount to almost €490 million (£385million) next year for schemes in Dublin, Cork, Limerick, and Galway. It will also be used to upgrade rural water supplies.
The Budget also saw an increase in the provision for capital grants for waste management to €30 million (£23 million) in 2002 for a scheme of recycling grants which the Minister, Mr Dempsey, intends to introduce.
An additional €146 million (£114 million) for the social housing programme, will bring the provision for social housing to over £1.1 billion. The Minister said this would ensure that 6,000 local authority houses will be completed or acquired next year.
Commenting on the extra €300 million (£236 million) being made available, Mr Dempsey said it was "proof positive that this Government has delivered on its commitments to improve our infrastructure. We can all look forward to better roads and water services, and high levels of social housing provision", he concluded.