Budget bid information

We manage over $1.5 billion in taxpayers' money to pay for medicines, vaccines, and other related products to improve health outcomes for New Zealanders.

Budget 2024

Budget 2024 saw the overall Combined Pharmaceutical Budget (CPB) increase to over $1.5 billion. 

The CPB funds medicines, devices, vaccines, haemophilia treatments, and related products, that are provided in community settings and all spending on medicines that are given in public hospitals.

The Budget announcement in April 2024 provided Pharmac certainty around its budget. It covers the costs of medicines that are currently funded and COVID-19 vaccines and treatments. The funding will also allow Pharmac to take recent consultations for continuous glucose monitors for people with type 1 diabetes and treatments for multiple myeloma to the Board for a decision.

Changes to the CPB from 2023/24 ($ million) and out years

Budget breakdown ($m)

2023/24

2024/25*

2025/26

2026/27

2027/28

CPB Funding pathway

1,311.0

1,130.0

1,130.0

1,130.0

1,130.0

COVID-19 vaccines and treatments

164.8

 -

-

- 

- 

Impact of removal of $5 co-payment

45.8

-

-

-

-

Budget 2024

-

420.4

442.4

455.4

455.4

Budget 2024 – Revised $5 co-payment policy

-

31.2

32.0

32.8

33.6

CPB funding pathway
(including all expected uplifts)

1521.4

1,581.6

1,604.4

1,618.2

1,619.1

* current financial year

National Pharmaceutical Purchasing Appropriation

From 1 July 2022, an appropriation was created by Government and allocated to Pharmac (widely referred to as the Combined Pharmaceutical Budget or CPB). This was part of health and disability system reforms, shifting budget holding and management away from the previous 20 District Health Boards to the national body responsible for assessment and decision-making about funding.

The appropriation for the CPB is called ‘National Pharmaceutical Purchasing Appropriation'

How the CPB has changed over time

Combined Pharmaceutical Budget (CPB), 2017/18 to 2024/25

FINANCIAL YEAR

CPB ($ MILLION)

CHANGE FROM 
PREVIOUS YEAR
($ MILLION)

PERCENTAGE CHANGE
FROM
PREVIOUS YEAR (%)

2024/25

1,521

23

2%

2023/24

1,498

312

26%

2022/23

1,186

101

9%

2021/22

1,085

40

4%

2020/21

1,045

5

0.5%

2019/20

1,040

55

6%

2018/19

985

114.2

13%

2017/18

870.8

20.8

2%

2016/17

850

50

6%

 

2015/16

800

5

0.6%

 

2014/15

795

-

-

 

2013/14

795

11.4

1%

 

* Current financial year 

Pharmac's financial year runs from 1 July to 30 June.

Previous budget bid letters

Before 2022/23, we worked with all the district health boards to agree the CPB bid. Together, we sent this proposal to the Ministry of Health.

More information

About the Combined Pharmaceutical Budget

We have released a lot of information about the CPB under the Official Information Act (OIA). Search for Budget on our OIA index page.

Official Information Act responses