An extra €425 million (£334,714,700) allocated in the Budget will bring gross health expenditure to nearly €8.2 billion (£6.46 billion) for 2002.
However, the failure by the Government to widen eligibility for the medical card came in for strong criticism as did the 10p increase on cigarette prices, seen as too little by health campaigners.
The extra money will be used to fund elements of the health strategy announced in recent weeks, including the purchase of private care for public patients and funding more family doctor co-operatives.
The way in which the health services use money is to come under scrutiny from an independent Commission on Financial Management and Control Systems.
The Minister for Health, Mr Martin, welcomed the establishment of the Commission saying it would help to underpin the commitment in the health strategy "to ensure that funding has the greatest impact on public services".
The Irish Medical Organisation expressed "utter dismay" at the absence of any widening of eligibility for the medical card.
"At a time of unprecedented wealth the Government is continuing to ignore those in greatest need," said Dr James Reilly, the IMO's GP representative. He said that in a telephone survey conducted by Lansdowne Market Research on behalf of the IMO, 96 per cent of those questioned said the Government should extend the medical card to cover all low income groups.
The Carers' Association said the Government had made "no effort" to support carers - particularly by failing to end the concept of means testing - and that this was contrary to the "very fine words" in the primary care strategy published last week.
The 10p increase on the price of 20 cigarettes was criticised as too little by the Irish Heart Foundation and the Irish Cancer Society. "An increase of at least £1.50 was required on the pack of 20 cigarettes and related products if any significant positive health results were to be achieved," Mr Michael O'Shea, chief executive of the IHF said.
The Irish Cancer Society said it was "dismayed" by the increase which would have no deterrent effect and was designed only to raise taxes.
The main measures to be covered by the extra spending announced in the Budget include:
Extra beds: €40 million (£31.50 million) to pay for 450 extra public beds and to allow 200 private sector beds to be contracted out by health boards and hospitals. In addition €30 million (£23.63 million) will go to a Treatment Purchase Fund to purchase treatment from private hospitals in Ireland, and from hospitals abroad. This fund may also be used to buy treatment for patients in public hospitals to which they would not normally be sent (e.g., in another part of the country) but which have spare capacity.
Disability: €39 million (£30.71 million), including €14 million (£11.03 million) previously announced in the public spending estimates for persons with intellectual disabilities including mental handicap and autism. This will pay for a range of measures including over 100 new residential places, 75 new respite places and 600 new day places. €47 million (£37.02 million), including €22 million (£17.33 million) previously announced in the public spending estimates for persons with physical disabilities.
Older people & palliative care: €81 million (£63.79 million), including €36 million (£28.35 million) previously announced in the public spending estimates to pay for an improved Nursing Home Subvention Scheme, more Home Helps, more community services and additional respite care and support for carers.
Family doctor services: €19.6 million (£15.44 million), including €4.6 million (£3.62 million) previously announced in the public spending estimates for more GP co-operatives particularly to enhance out of hours services in rural areas.
Cancer and other conditions: €70 million (£55.13 million) including €51 million (£40.17 million) previously announced in the public spending estimates to pay for improved services in cancer, cardiovascular disease and mental health and in particular to continue to develop palliative care services.