Health Financing

Government funding to the health service has been steady at 6% of total government annual budget appropriation for the past 5 years (2013-2016). Compared against GDP, the health budget averages 2014/15 (3.7%), 2015/16 (3.85%) and 2016/17 (3.45%). The most favourable year being 2015/2016.

Health Budget 2015/2016 by Source and Outputs Allocation


For the Te Marae Ora’s 2016/2017 budget the following allocation/percentage distribution was noted for key expenditure items;

Operating Expenditure $2,506,330 18%
Personnel $8,207,307 60%
Depreciation $654,788 5%
Capital Expenditure $744,500 4.7%
Patient Referrals $550,000 4%
NCD control $195,000 1.4%
Nursing School $234,070 1.7%
Pharmaceutical $667,800 4.8%


Notable in the past 3 years’ annual health budget is the provision of costs for the establishment and operations of the nursing school. The nursing school funding is related to human resource development and supports the overall HR strategy of the TMO. The funding for NCD control has been maintained and reflects government commitment to reducing NCDs. Compared to most PIC, Te Marae Ora’s funding for overseas referral is low at 4%. With its unique relationship to New Zealand, effective and efficient overseas medical referral mechanisms have been maintained at a fairly reasonable cost to CIG.

Health budget appropriation 2016-2017