Pharmac has received a funding boost - but the Government says it's to cover a 'fiscal cliff' left by Labour.

Associate Health Minister David Seymour revealed the drug-buying agency will be bolstered by more than $1.7 billion over four years, as part of the Budget.

Medicines New Zealand CEO Graeme Jarvis says he was aware of this gap in funding.

He says the Covid-19 pandemic created more fiscal cliffs to be dealt with than even Treasury considered.

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