Despite health receiving the largest share of new Government spending in Budget 2026, a leading health economist warns the investment is unlikely to deliver the improvements needed to address growing pressures across New Zealand’s health system.
Professor Paula Lorgelly, a health economist at the University of Auckland, says the Government’s health package largely covers rising costs rather than providing the additional resources required to significantly improve access to healthcare and reduce longstanding inequities.
Budget 2026 allocates 70 percent of all new Government spending to health, lifting Vote Health to $34.2 billion and committing $5.8 billion in new funding over the next four years.
However, Professor Lorgelly says much of that funding will be absorbed by inflation, population growth and increasing demand, leaving little room to tackle the structural challenges facing the sector.
The warning comes as many New Zealanders continue to struggle to access timely healthcare. General practice enrolment gaps, long waiting times for specialist treatment, increasing pressure on emergency departments and workforce shortages remain significant concerns across the system.
The report highlights that Māori, Pacific peoples and disabled New Zealanders continue to experience greater barriers to healthcare access and poorer health outcomes than the wider population.
Professor Lorgelly says estimates suggest the health system requires substantially more funding simply to maintain existing services, with even greater investment needed to address years of underfunding and rebuild capacity.
One of the major concerns identified is the lack of dedicated investment in primary healthcare and preventive services.
Health experts argue that strengthening community-based care, general practice services and early intervention programmes offers some of the most effective ways to improve health outcomes while reducing long-term costs elsewhere in the system.
While Budget 2026 includes investment in hospital infrastructure, digital systems and capital projects, Professor Lorgelly says buildings and technology alone cannot resolve workforce shortages or improve access to care without additional investment in frontline health professionals.
The analysis acknowledges that some communities will benefit from initiatives such as expanded bowel cancer screening and support for ambulance services, but concludes that the overall package remains insufficiently targeted to address the deeper challenges facing the health sector.
Public health advocates say meaningful improvements in health outcomes, particularly for Māori and other underserved communities, will require stronger investment in prevention, primary care and equitable access to services.
As pressure continues to mount on the health system, the debate is likely to intensify over whether current funding levels are enough to meet growing demand and improve outcomes for future generations.
