There's concerns over whether the costs for the new Waikato University medical school will blow out and be passed on to taxpayers.

Cabinet will contribute $80 million to the $230-million-dollar Waikato University school, which is expected to open in 2028 for 120 trainees. 

University of Waikato Vice-Chancellor Neil Quigley says the university is on track for a surplus of $20 million this financial year.

"The university is in really good financial shape, enrolments have risen very quickly this year...and we have no debt at the moment either."

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