Public Health Expenditure

IBISWorld forecasts public health expenditure to rise by 1.3% in 2024-25, to reach $30.6 billion. New Zealand’s growing and ageing population is expanding the need for healthcare. According to the Budget 2024, the New Zealand Government (Te Kawanatanga o Aotearoa) is increasing investment in health to strengthen frontline health services and shorten wait times. While overall public health expenditure is expected to increase, investment towards digital health initiatives is forecast to reduce compared to the past years. The Central Government’s emphasis on enhancing health through investing in healthcare services, staff and infrastructure is expected to boost public health expenditure in 2024-25.

New Zealand’s health system reform resulted in public health expenditure to jump over the past two years through the end of 2021-22. In July 2022, the Central Government abolished the District Health Board funding system (DHBs) and instead opted for a centralised health funding and management model under the banner of a new body, Health New Zealand. Two further new health agencies were created: the Maori Health Authority, responsible for improving health outcomes for Maori people and the Public Health Agency, which manage all public health works. The Budget 2022 allocated $1.8 billion in extra funding for 2022-23, as part of a broader four-year funding allocation.