The cash-hungry health sector got the lion's share of reprioritised money in today's budget, but critics say the extra funding comes from slashing some areas to apply a band-aid in others.
An extra $585 million will be pumped into health this year, with $165 million coming from savings within the sector and $420 million from other areas of the budget.
Health Minister Tony Ryall said health was the biggest recipient of funding in this year's budget, which demonstrated the Government's strong commitment to protecting and growing public health services in difficult economic times.
"Despite the serious economic environment, this Government will have invested an additional $1.5 billion of new resources into health in its first three years in office to meet our commitment to a strong and enduring public health service," he said.
The health sector will get $13.9b this year, up from $13.5b last year. District health boards (DHBs) will receive about $400m, including $50m in service contracts from the Ministry of Health.
Mr Ryall said a total of $2.2b would be pumped into the health sector over the next four years, with funding going towards extra medical training, wider access to medicines, more elective surgery, disability support, maternity services and doctors' visits subsidies.
Almost a quarter of that funding will come from $505.1m in reprioritised health spending, with savings to be made in workplace training, immunisation, back-office spending, and funds that are no longer needed.
Extra spending over four years includes $18m for 40 extra medical training places, $80m for widening access to medicines, $68m for elective surgery, $130m for disability services and $80m to subsidise GP visits.
Dementia care and mental health will get an extra $40m each, while maternity care and services for new mothers will get $54.5m, as signalled pre-budget.
Immunisation funding has been trimmed overall, but will be augmented by a $12m boost to fighting rheumatic fever in vulnerable communities.
Savings in the budget include $39m in workforce training, $20m in staff cuts and back-office savings, and $19.4m in immunisation programmes.
National contracting of services will yield $72m in savings, while contingency funds that are no longer needed will save $30m.
New Zealand Nurses Organisation chief executive Geoff Annals slammed the budget, saying the Government seemed to be working towards a future where only the most privileged could access basic health and education.
"It has tinkered around the edges of an insufficient health budget, slashing some areas to apply a band aid in another," he said.
Council of Trade Unions economist Bill Rosenberg said health services would get almost $110m less in real terms than they would need to keep up with rising costs and growing demand.
"This will lead to another round of cuts by DHBs as they try to meet already constrained budgets," he said.
"Many of the new initiatives announced in health will have to be paid by cuts in health services elsewhere."
But the health budget drew praise from other quarters, with the New Zealand Medical Association welcoming the new initiatives.
Association chair Paul Ockelford said he was pleased to see funding to target rheumatic fever, which he labelled a "national disgrace".
Medicines New Zealand welcomed the extra funding for subsidised pharmaceuticals, while the Aged Care Association said extra funding for dementia care would help bridge the funding gap identified in a review last year.
