We are providing this extra money over and above the amounts announced

Mark Durkan Finance minister

Mr Durkan said the additional cash was made up of money from unspent funds from other departments plus the �27.8m given to the executive last week by Chancellor of the Exchequer Gordon Brown.

Mr Durkan also outlined a new system of allocating resources to government departments.

Finance committee chairman Francie Molloy, of Sinn Fein, called for reassurances that the health money would be used for the right purposes.

"We do need new money and real money to make sure a vital service is maintained," he said.

Bairbre de Brun: Health Minister

Mr Durkan rejected claims by Fred Cobain, of the Ulster Unionist Party, that cuts had been made in areas of urban regeneration and community development.

"It comes at a time when investment is desperately needed in places like north Belfast to help and support local communities," Mr Cobain said.

Health committee chairman Joe Hendron, of the SDLP, said the increases "did not go far enough" to reverse the "decline in the NHS".

He wanted assurances that the executive would give total support to Health Minister Bairbre de Brun in acquiring funding for a new cancer centre.

"Although extra money is very welcome would the minister not agree that the total is still �50m short of the department's bids for the �122m for 2002/3 which were needed just to maintain services?" he asked.

"Therefore those services overall may continue to fall."

Mr Durkan said the overall increases in health met well more than half of the bids by Ms De Brun.

He said the additional �41m from that announced in the draft budget would produce real improvements in the health service.

Agriculture committee chairman Ian Paisley, of the Democratic Unionist Party, expressed concern that the budget did not address the crisis in the farming industry.

Seamus Close of the Alliance Party acknowledged the attempt by the executive to focus on the most vulnerable sections of society by giving a further increase to health.

A vote on the budget will take place on 11 December.

Major review

Meanwhile, Mr Durkan is expected to give up the finance portfolio following his election as Northern Ireland deputy first minister and SDLP leader.

His budget document was first published two months ago.

The department's civil servants are preparing themselves for a major review of spending next year.

Plans by the chancellor to devote more funds to the NHS are expected to be replicated in Northern Ireland.

The mechanism which determines Northern Ireland's share of money from the Treasury, the Barnett Formula, will be reviewed in July.

The Northern Ireland Executive is also expected to review its own spending plans for 2003/4.