They also accused health ministers of not collecting enough information to realise the full extent of the problem.
The Commons public accounts committee report on NHS financial management says errors in the costing of national pay awards for doctors, nurses, and other NHS staff increased spending by£560m, without extra government funding.
It also criticises in-year financial information produced by some NHS bodies, which fails to allow the department to manage national finances in 'an effective manner'..
The report concludes that doctors must be more closely involved in budget decisions. It blames a combination of weak management, poor planning, and lack of transparency for current problems, and says doctors and managers must join forces to ensure money is well spent.
Committee chair Edward Leigh MP said: 'The transparency of the NHS financial reporting regime must be improved further to prevent deficits being hidden. There is also no excuse for clinicians to distance themselves from money matters as if the quality of healthcare delivered by an organisation has nothing to do with whether it has to dig itself out of deficit.'