South Canterbury District Health Board says there will be no reduction in services despite spending $1.4 million less during the next year.
Labour Party health spokesperson Ruth Dyson says the DHB's annual plan paints a grim picture.
She says the cuts include $1.2 million for child oral health and reductions in palliative care and primary care.
But the board's chief executive of Chris Flemming says those services won't suffer because of the spending cuts.
He says oral health will cost less because last year the DHB bought new mobile oral health units and a fitted out a facility in Timaru.