NZ 2016-17 Budget focuses on healthcare, allocates USD2.2 billion

The 2016-17 New Zealand released early today announced an extra funding to be injected in to healthcare sector. The government has made a commitment towards allowing USD 2.2 billion over the course of next four years.

The major portion of this sharing has been allotted to District Health Boards, with USD1.6 billion to cover an increasing population and new services. Also, funding of USD169 billion has been allotted towards disability services while another USD124 million will be directed towards Pharma and presumably, some of the recent demand around advanced medicines.

"This budget has really been about keeping up with population growth and we see that again when we look at healthcare," said PwC Partner Richard Forgan.

Meanwhile, USD96 million has been allocated towards elective surgeries, slightly below the USD98 million for these surgeries in last year’s Budget. Also, USD73 million has been announced for primary healthcare, including extra support for free doctor’s visits for less than 13 years of age. A national bowel screening program worth USD39 million and air and road ambulance services worth USD15 million in funding has been cordoned off as well in the latest 2016 Budget.

Post implementation, the program will screen about 700,000 people every two years. DHBs will offer people aged 60 to 74 a bowel screening test every two years.

"It is also important to note that the Budget made no allowance for tax cuts. This is clearly another source of risk that the surpluses could end up smaller than forecast in the Budget," Westpac said in a research note.

However, the Government will claw some money back through increased tobacco excise which will rise by 10 pct on January 1 each year until 2020, a change expected to bring in USD425 million during that period, reports confirmed.