The NHS is facing a £94m deficit by the end of the 2006-07 financial year, according to a forecast by the Department of Health (DoH).
Hospitals and primary care trusts are estimated to have more than £1bn in debts already.
The overall NHS budget is currently more than £80bn.
NHS Employers indicated in October that the training budget for graduates joining the health service would be cut by 10%.
The NHS spent a total of £1.3bn on agency and temporary staff last year.