The health budget will reach over €22 billion in 2021, the largest in the history of the State.
It includes an increase in ICU beds to 321 by the end of 2020 - up 24 on current levels and up 66 on 2020 plans.
Acute beds are to increase by 1,146 by the end of 2021, with sub-acute beds rising by 135.
An increase in community beds of 1,250 has also been budgeted for, including 600 new rehabilitation beds.
The Irish Medical Organisation (IMO) says the budget begins to address the shortfall in beds and the move of care to the community.
However, it must be accompanied by a guaranteed, multi-annual investment to increase bed numbers by at least 5,000 over a relatively short period of time.
Dr Padraig McGarry, IMO President, said: “We remain deeply concerned about the crisis in medical manpower and whether there are real plans to tackle this.
"Nevertheless we recognise the scale of the investment announced today. It is tragic that it took a pandemic to finally get the investment that our health services have needed for over a decade.
"While we absolutely welcome any additional investment this cannot be once-off expenditure and must continue to improve year on year until we have the capacity we need.”