Analysis of spending in the first nine months of the current financial year suggests a surplus of 2.3 per cent of the total NHS budget for 2007/8. The DoH says the extra £1.8 billion will remain in the NHS.
This contrasts with a recorded deficit of £547 million at the end of 2005/6.
Commons Health Select Committee chairman and MP for Rother Valley, Kevin Barron said: 'My understanding is that this money, where it is held, will be carried over and used better than money has in the past when it's had to be cleared out of the books before the end of the financial year.
'I'm very happy that they're carrying it over to the next year and I'm making sure that the treasury or the DoH don't start to claim any of it back.'
The gross deficit is also expected to fall to £143 million, compared with £204 million in the first quarter of the financial year and £917 million at the end of 2006/7.