Page last updated at 11:03 GMT, Wednesday, 24 October 2012 12:03 UK

Finance Committee

Committee Chair Jocelyn Davies warned on 25 October 2012 that Local Health Boards (LHBs) will inevitably spend all their allocated money because they do not want to lose the funds.

Under the current system, any left over monies at the end of the financial year are returned to a central pot.

Plaid Cymru AM Ieuan Wyn Jones called on the finance minister to give health boards more flexibility in terms of their budgets.

Allowing them to carry any left over money to the next financial year would encourage the boards to come under budget.

The Ynys Môn AM warned that under the current system, there is no incentive for them not to spend it as they know that they can ask for more every year.

At the end of the last financial year, six local health boards faced a combined £230m deficit.

Finance Minister Jane Hutt AM explained that health minister officials were currently undertaking a review of the NHS finance regime to explore how finance flexibility can be put into practice.

She refused however to make any comments on the subject until the results of the review are known.

The minister came before the Finance Committee to answer questions in connection with the government's draft budget .

Read this in Welsh.

Finance Committee membership

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