HSE reports budget deficit of €170m

The HSE has overspent its budget by €170m in the first five months of the year, according to the body's latest progress report.

The report for the period until end May shows major overspending in the HSE's primary care and childcare service.

The HSE said pay is contributing significantly to the deficit, with new restrictions on the hiring of replacement staff and agency staff being implemented in a bid to cut costs.

A recruitment freeze has been in place at the HSE since March 2009.

This latest report also shows that hospitals' financial deficits have grown to €120m and some facilities are likely to run into serious cash flow problems unless expenditure is cut.