The £17.6m budget boost for the Isle of Man Department of Health and Social Security (DHSS) could help it balance its books, the health minister says.
The Health Minister is happy with the 2008/09 budget
Eddie Teare's department was given a spending increase of 8.2% for 2008/09 in the budget announced on Tuesday.
In recent years, the DHSS has been forced to ask for more money from Tynwald because of overspending.
Mr Teare said the rise could signal a more stable future for the Isle of Man's health and social services.
"It's been said on more than one occasion that the department is expected to do too much with too little resources," said the minister.
"This budget now gives us a good opportunity to try to balance our books.
"With the steps we've taken over the last year, and also the steps which have been put in place by my predecessors, I think we're certainly much closer to achieving that."
Despite the increase, the treasury minister made it clear the department would have to continue to find efficiency savings.