The health service is to get an additional budget allocation of €500m for the year.
The Government today approved the revised estimate for 2016, which will mostly go towards an expected HSE year-end overrun.
It will also be used to ease emergency department overcrowding, under a new winter initiative, and fund home-care services.
Minister for Health Simon Harris said that the greatest need for budget accountability and control is in the acute hospital sector.
Mr Harris also said the revised estimate "will allow us to restore the full ring-fenced mental health budget and provide more funding to school-leavers with disabilities".
The minister added that it was "really important that our managers within the health service now manage it and manage it responsibly to deliver for patients and to deliver for the tax payer."
The Department of Justice will also receive additional funding under the revised estimates.
Minister for Public Expenditure and Reform Paschal Donohoe said the Government had approved a total increase of €540m in the proposed Government Expenditure for 2016.
He said: "The Revised Estimates for Public Services 2016 published in December 2015, set out a gross expenditure estimate of €55.3 billion for 2016. The increase of €540 million will allow for targeted increases to support the delivery of key services in the health sector and by An Garda Síochána.
"As outlined in the April Stability Programme Update increases of this order can be provided while continuing to deliver against the key fiscal targets. It will be important that Departments continue to prudently manage expenditure within the allocations now proposed for 2016."
The Health Service Executive (HSE) has welcomed the additional €500m to the health budget.
Tony O'Brien, Director General of the HSE said: "In approving the additional funding for the health services the Government has in effect stabilised the finances for 2016 and allowed a realistic target to be achieved by year end."
Mr O'Brien also said: "There is now a significant opportunity for the HSE and its service providers to demonstrate effective and supplementary estimates."
