Dr Haikerwal said the Health Budget documents are full of dot points but the Government has failed to join the dots to properly address the health big picture.

"So much could have been achieved with a big budget surplus, especially in Indigenous health, and in combating obesity.

"With the budget surplus screaming out for big ticket items we find ourselves in the health policy two-dollar shop.

"Investing in health is investing in Australia's future.

"This Budget has avoided tackling the important infrastructure needs to set the health system up for the needs of the ageing population and the next generation.

"There is nothing for public hospitals.

"There's very little for Indigenous Australians who still suffer health standards and living conditions that are amongst the worst in the world.

"The AMA does, however, welcome the previously-announced initiatives on mental health, medical research and medical workforce, and there have been some positive moves in improving aged care services.

"The Government's commitment to mental health meets the AMA's expectations, especially if there is a greater emphasis on the use of private psychiatrists through GP referral.

"The efforts to address the medical workforce shortage with 400 new medical places is a smart move, but it will be some years before this initiative takes full effect. But we have concerns about the lack of postgraduate training measures."

Dr Haikerwal said the Health Budget is a mix of the good, the bad and the ugly.

The Good

Mental health

• Medical research
• Preventive Health measures
• Health checks for refugees
• Funding for Aged Care

The Bad

• Not enough for rural health
• No support for overseas-trained doctors
• Misguided faith in call centres with no evidence of their value
• No funding for health assessments for intellectually disabled patients
• Minimal support for rehabilitation
• No medical postgraduate training initiatives

The Ugly

• Under recognising the needs of Indigenous health
• Nothing for public hospitals
• No funding for 7-tier GP consultation structure
• Not enough to combat obesity across all ages
• No funding for National Nutrition Centre or National Nutrition Survey
• Nothing to address the health effects of climate change
• Bonding of medical students to rural areas

Dr Haikerwal said the Smartcard initiatives announced by Minister for Human Services, Joe Hockey, lack detail and must be carefully scrutinised to ensure safety.

"There are still too many unanswered questions about security, confidentiality and privacy for such a huge funding commitment of more than a billion dollars," Dr Haikerwal said.

The AMA will release a more comprehensive analysis of the 2006 Health Budget over the next couple of days.