Budget bid information
We manage $1.497.6 billion in taxpayers' money to pay for medicines, vaccines, and other related products to improve health outcomes for New Zealanders.
Budget 2023
Budget 2023 saw the overall Combined Pharmaceutical Budget (CPB) increase to nearly $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 increase includes funding to pay for COVID-19 vaccines and treatments, which were previously paid for from a separate budget. An additional $21.8 million of funding was also provided because the $5 co-payment was removed. We expect this policy change to increase the number of people picking up their prescriptions - increasing the cost to the CPB.
Changes to the CPB from 2022/23 ($ million)
BUDGET BREAKDOWN ($ Million) |
2022/23 |
2023/24 |
Budget 2021 |
1,090 |
1,100 |
Budget 2022 Hospital medicines - baseline increase |
25 |
25 |
Budget 2022 |
71 |
120 |
Budget 2023 |
|
66 |
COVID-19 vaccines and treatments |
|
164.8 |
Impact of $5 co-payment removal |
|
21.8 |
Total CPB |
1,186 |
1,497.6 |
Budget 2022
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.
2022/23 Vote Health estimates(external link)
The appropriation for the CPB is called ‘National Pharmaceutical Purchasing Appropriation'
What we asked for
Pharmac’s advice to the Ministry and Minister of Health for Budget 2022 was for an increase of $191 million to the CPB over two years.
Pharmac will use biggest budget increase ever to fund more medicines for more New Zealanders
$ MILLION |
2021/22 |
2022/23 |
2023/24 |
CPB baseline |
1,085 |
1,090 |
1,100 |
New medicine investments |
- |
71 |
120 |
COVID-19 Response and Recovery Fund
Pharmac received additional separate funding from the Government to meet additional CPB costs that were incurred as a result of the COVID-19 pandemic. The table below summarises the funding received from 2019/20.
$ MILLION |
2019/20 |
2020/21 |
2021/22 |
2022/23 |
2023/24 |
COVID-19 Public Health Response: Additional Funding |
35.0 |
|
|
|
|
COVID-19 Response and Recovery Fund (CRRF) |
|
74.0 |
76.0 |
50.0 |
- |
How the CPB has changed over time
Combined Pharmaceutical Budget (CPB), 2017/18 to 2023/24
FINANCIAL YEAR |
CPB ($ MILLION) |
CHANGE FROM |
PERCENTAGE CHANGE |
|
2023/24* |
1,497.6 |
311.6 |
26.3 |
|
2022/23 |
1,186 |
101 |
9.3 |
|
2021/22 |
1,085 |
40 |
3.8 |
|
2020/21 |
1,045 |
5 |
0.5 |
|
2019/20 |
1,040 |
55 |
5.6 |
|
2018/19 |
985 |
114.2 |
13.1 |
|
2017/18 |
870.8 |
20.8 |
2.4 |
|
2016/17 |
850 |
50 |
6.3 |
|
2015/16 |
800 |
5 |
0.6 |
|
2014/15 |
795 |
- |
- |
|
2013/14 |
795 |
11.4 |
1.45 |
|
* 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.
- Letter dated 7 December 2020 for the 2021/2022 pharmaceutical budget bid [PDF, 126 KB]
- Letter dated 3 December 2019 for the 2020/21 pharmaceutical budget bid [PDF, 131 KB]
- Letter dated 4 December 2018 for the 2019/20 pharmaceutical budget bid [PDF, 149 KB]
- Letter dated 7 December 2017 for the 2018/2019 pharmaceutical budget bid [PDF, 174 KB]
- Letter dated 15 December 2016 for the 2017/18 pharmaceutical budget bid [PDF, 646 KB]
- Letter dated 1 December 2015 for the 2016/17 pharmaceutical budget bid [PDF, 1.9 MB]
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.