Treasury said that many health providers had warned that "if full funding is not received, they would need to cut services," or request that the Government limit the number of people who would be covered by the service.
The briefing warned of "severe disruption" to the health service and "growing inequalities and rising acute demand" if funding was not secured.
Treasury said the increase in Pharmac funding should be deferred to Budget 2022 to 2023 so that the findings of an independent review into Pharmac could be considered before implementing any funding changes.
This is despite funding being excluded from Pharmac's terms of reference.
Treasury also recommended that Ola Manula, the Pacific Health and Wellbeing Action Plan should be delayed until 2022 or 2023.
Labour decided to reject this advice, but cut the project's funding from $20m promised at the election to $16m.
Funding for cochlear implants was also slated for deferral. Labour rejected this, and did not cut its funding.
One manifesto commitment that did not get any attention was funding for emergency dental grants.
At the election Labour promised to spend $176 million on emergency dental grants and $37.5m for mobile dental clinics, beginning in the 2021 Budget.