The Budget provides almost $4 billion in extra funding for health over the next four years.
It will take total spending on the sector to $16.77bn in the financial year beginning in July.
The government says the extra $879 million going in over the next financial year is the biggest rise in 11 years.
District health boards get an extra $439m a year over four years, boosting their operational funding 3.9 percent from $12.1bn this year to $12.682bn.
The government says the overall funding increase will deliver new initiatives to meet cost pressures and population growth.
New measures include an extra $224m over four years for mental health services.
This includes $100m through a new cross-government social investment fund that will target innovative new proposals to tackle mental health problems.
The Corrections Department will get $11.6m of that to help it manage and support prisoners at risk of self harm.
And $4.1m is set aside to enable the Ministry of Social Development to trial integrated employment and mental health services; while $8m is to extend the Rangatahi Suicide Prevention Fund.
DHBs will provide $100m over the next four years to support local mental health and addiction services, with the money coming from their funding boost over the next four years of $1.756bn.
Primary care receives extra support of $9.5m a year for the next four years; and there's $38.5m over the next four years towards the long-awaited staged roll-out of screening for bowel cancer, beginning in July.
Under initiatives already announced, there is spending of $303m next financial year ($1.384bn over four years), for pay equity for care and support workers; $60m over four years for extra spending on drugs; and $52.2m over four years for double crewing ambulances.
Want more detail? Read RNZ's full Budget coverage here.