All government department are to get an extra 2% to deal with pay demands and an extra 1% for non-pay pressures.

Extra money on top will be provided to Manx Care.

Its budget will be increased by 5.23% and it will get an additional £14m contingency funding to deal with some of its unexpected costs. The total extra for health is £25m.

It takes the total expenditure for health and social care to £387.4m, dwarfing all other parts of government spending, including the forecast £366.5m for social security benefits and payments, which includes the state pension.

The DHSC will be seeking a supplementary vote, probably next month, to cover Manx Care’s £15.8 year-end budget shortfall.

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On paper it looks from the Pink Book like the DHSC’s budget is going down but in fact the extra funding for the NHS is coming from the NI Fund, rising from £54.7m currently to £71m from April.

Some £10m of this is from the policy change to increase the allocation from 19.3% to 24.8% and the remaining £6.3m from a statistical revision.

Meanwhile, there’s an extra £8.3m available in the Budget for education. Forecast expenditure for the Department of Education, Sport and Culture will be £161.3m in 2025-26.

Dr Allinson said some of this extra funding will be directed to children with additional needs.

Meanwhile, there are requirements by departments across the £1.3bn government budget to make efficiency savings of around £25m, which will be monitored through quarterly management accounts.

The Treasury Minister said: ‘Every department has got more money. Is it enough for what they necessarily want to do? I would probably say no.

‘When you look at government spending you can always spend more money on a range of different services. What we are trying to do is make sure that money is affordable, and budgets are put into the right areas.

‘In terms of healthcare spending there is no blank cheque - there can’t be because the healthcare budget is now the largest part of our overall budget. It’s even larger than our benefits, 80% of which are pensions.

‘So it’s a huge part of our budget. Obviously we’ve seen the huge pressures on healthcare spending both here and across, and unexpected cost pressures can really derail those budgets and cause significant overspends that can affect the whole government finances.’

Dr Allinson said pay growth has exceeded inflation.

And he said: ‘This is trying to bake in some of those efficiency savings that we needed to continue to provide frontline services

‘So, while all department budgets will go up, and we are not cutting back on any of them, we are asking them to really make sure that they can carry on providing services in the most economic and efficient way as possible within their budget.’

The Treasury Minister said that in the first quarter of the current financial year, there were three or four departments that were looking like they might be overspent.

This has been reduced to one - DHSC/Manx Care - and the rest of the departments are looking to come in on budget this year.

Budgeted expenditure for the Department of Infrastructure in the coming year is £116.1m, while that for Home Affairs is £45.4m and the Cabinet Office is £43.6m