€29.1bn allocated to health in Budget 2027

The Government has allocated €29.1 billion to health in Budget 2027, it has been announced.

The figure is more than €1.7 billion greater than last year’s allocation, representing a percentage increase of 6.2 per cent.

Minister for Public Expenditure Jack Chambers announced the overall Budget package in the Dáil today (Tuesday 6 October).

Following the announcement, consultants expressed concern about healthcare spending.

“While we welcome the additional funding for health in Budget 2027, the current spending overruns in the HSE, which could reach €1 billion by the end of the year, point to an inability to set these budgets on a realistic footing, properly accounting for increasing demand for care and treatments,” according to a spokesperson for the IHCA.

“In particular, the current allocations to our acute hospitals, which account for up to 40 per cent of total HSE spending, are simply inadequate to maintain existing services and meet expected demand, given demographic and price pressures.

“More realistic, multi-annual budgeting is therefore needed for our hospitals, otherwise health spending will significantly overrun again in 2027, and we will face further stop-start recruitment which is one of the more expensive habits of the HSE.”

The spokesperson added that given the uncertainty over current windfall tax receipts, future governments may not be in a position to double health spending over the next two decades to cover the anticipated three-to-four per cent  increase in demand for services each year.

“Consideration must therefore be given to more fundamental reforms in how we fund our health service, including a more mixed model that preserves universal access while aligning incentives for efficiency,” according to the spokesperson.

Also, President of the IMO Prof Matthew Sadlier has warned that the increased funding for health announced in the Budget will be insufficient to meet existing demand.

Prof Sadlier pointed out the 2026 health budget had a shortfall of approximately €1 billion, which highlights “the inadequacy” of next year’s allocation.

He criticised the repeated focus on generating savings in the health services as opposed to an acknowledgement that urgent and long-term investment is required.

 The IMO has said that the Government needs to be honest with the public that the budget for health will mean reduced funding for services, longer waiting lists, continued crowding, and further stress throughout the health services.

 Prof Sadlier also expressed concern about mixed messages from the Government on the broader issue of public health.

“We are trying to reduce alcohol consumption and are facing an increase in obesity yet for the last two Budgets, [the] Government has offered significant support to fast food operators and now to rural publicans – all the more galling for rural GPs who are struggling with significant challenges and [a] lack of funding to meet the health needs of the rural population.”