Health Minister Selena Uibo says $12 million has been committed for land and the design of a new 120-bed aged care facility in Palmerston in the health budget.

But she told Katie Woolf the government will rely on Commonwealth funding to build the facility, which aims to reduce bed block and pressure on hospitals.

Ms Uibo says $20 million has also been earmarked for a new health centre in Borroloola which will be equipped with dental, renal and x-ray facilities and a morgue.

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