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Asked by
Ayesha Verrall
List MP · Labour Party
Question
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Why is the $300 million for the Health Digital Investment Plan funded outside the Budget operating allowance via an equity withdrawal rather than through new appropriations?
Answered by
Hon Simeon Brown
Member for Pakuranga · National Party · Minister of Health
Answer
I am advised that an equity withdrawal was preferred to a new operating appropriation because it enabled the Government to rapidly fund time critical digital investment . This approach preserves capital investment settings, while converting available funds into operating funding where required, to better align with the nature of costs incurred in digital investments, which are often operational rather than capital with digital services more often being procured as software as a service.