The Budget increases spending on early childhood education by more than $110 million over the next four years, but provides no inflation-linked increase for the subsidies paid to early childhood centres.
The new spending includes $47.9 million over four years to increase funding for centres that enrol children from priority groups such as Maori and Pasifika.
A further $43.9 million over four years will be used to cover the increased early childhood enrolments expected to result from the Government's welfare reforms.
There is $19 million over four years for Maori language early childhood services.
The increases take the Government's annual spending on early childhood education from $1.3 billion this year to $1.4 billion next year.