Kaitiaki Hauora released new economic analysis ahead of Budget 2026, warning New Zealand’s public healthcare system remains significantly underfunded, with planned increases in health spending unlikely to meaningfully improve access to care. The analysis found New Zealand spends around $1.1 billion less per year on health than comparable OECD countries with similar public healthcare systems.
The Government announced $1.370 billion in additional health funding for the coming year in Budget 2026, equivalent to $5.48 billion over four years. However, the report shows much of that increase is likely to be absorbed by rising costs, population growth and demographic pressures.
A pre-Budget Cabinet paper also indicated new and expanded services are expected to be funded from within that same allocation. According to Kaitiaki Hauora, that means many existing services are likely to remain under pressure, with current challenges across the health system expected to continue or intensify.