The government has also set out plans in the budget to spend £1bn on buildings, infrastructure, IT and the new hospital in the next four years.
The treasury minister said: “Existing capital budgets will be devoted to that.
“I think we have one small amount of borrowing. The funding structure for the hospital is already agreed, but there will be a small amount of borrowing for Fort Regent, for the initial works and that is planned in this budget; but, otherwise, the funding will be through our existing capital budgets.”
Other proposed plans in the budget include increasing the personal income tax threshold for individuals from £20,700 to £21,250 and a reduction in alcohol duty on draught beer.