The Government is preparing for the cost of Covid-19 managed isolation to exceed its budget.

$500 million was put aside for its operations, and it's reported to be costing $2.4 million a day.

But Finance Minister Grant Robertson told Heather du Plessis-Allan the cost will increase because we have to continue having managed isolation for now.

He says he knows the daily cost sounds like a lot, but it's part of our defence against the virus, which keeps the rest of our economy working.

"That's getting us the ability to generate hundreds of millions of dollars worth of economic activity."

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