Reti said Health NZ has been exceeding its budget by as much as $130 million a month for the past five months, despite a 6.2% increase in funding included in the May budget. Health is the Crown’s second largest area of spending with a near $30 billion budget in the 2024 fiscal year, making it equal to 17.5% of all government spending. The Commissioner will have to find $1.4 billion of savings from the agency to keep it within the budget set in May this year. Labour leader Chris Hipkins and health spokesperson Ayesha Verrall said the agency was only exceeding its budget because it had been underfunded. A cabinet paper said the incoming government was aware of performance issues within Health NZ but the first significant monthly budget overrun was reported in March this year.
