Former Radio New Zealand chief executive Sharon Crosbie has told a court the company's news budget wasn't looted to fund other parts of the organisation.
She was giving evidence at an Employment Court case taken by the former managing editor of news, Lynne Snowdon, who claims that she was unjustifiably dismissed from the company.
Ms Snowdon took sick leave in 2003 and was dismissed in 2005 after she failed to return to work.
She later made complaints to a number of organisations, including police and the Serious Fraud office alleging that Radio New Zealand had committed fraud.
Ms Crosbie told the court on Wednesday that the newsroom had a budget and was required to work within those constraints.
She said each year, managers had to look at what was needed in their division and decisions would then be made on where funding would be allocated.
Ms Crosbie said the newsroom used the largest amount of the company's resources.