An accounting error by the Health Service Executive (HSE) means it will have €56.4 million euro less to spend in 2006, the Dáil heard tonight.
Minister for Finance Brian Cowen told TDs that he was informed last week that some funding earmarked for the HSE this year had already been spent in day-to-day expenses.
He said the HSE had mistakenly accounted for a €56.4 million carryover from its 2005 capital budget and this figure had been assumed accurate by his department in setting the HSE's 2006 budget.
However, the executive had allocated the cash to its current expenditure and the figure should not have been factored onto the capital side of the accounts.
The HSE had been allocated a budget of €558 million euro in the 2006 Estimates.
The Opposition was scathing in criticism with Sinn Féin's Caoimhghin Ó Caoláin saying it was further proof that the Government's runing of the health service was "shambolic".
Fine Gael deputy leader Richard Bruton called for a full explanation from Tánaiste Minister for Health Mary Harney and warened that the accoutning switch was against procedure.
"A hole had emerged in the Minister's current budget and she has switched money allocated for capital purposes to fill that hole. Such a change needs approval from the Dáil, which she did not get," he said.
Labour finance spokesperson Joan Burton said: "It is a major accounting error to confuse capital spending with current spending."
Mr Cowen said he would ensure that the shortfall would not have adverse consequences for health funding.
"I am determined to ensure that it will not have an adverse impact on the plans for the HSE 's capital spending in 2006.
"As matters stand, the 2006 capital allocation for the HSE is €558 million, an increase of 10 per cent on the provisional 2005 out-turn."
Additonal reporting PA