The prediction is based on the first six months of the financial year and is subject to fluctuation until April 2008.
The position compared with a deficit of £547 million at the end of 2005/6.
The DoH explained that the surplus represents 2.3 per cent of the NHS budget. It will sit within the NHS and will be spent on further improving services and patient care.
Health secretary Alan Johnson said: ‘The NHS is getting more efficient, generating a surplus while improving performance.’
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