The state government is holding fire on the ''tough'' federal budget and talking up the positives.
State Growth Minister Matthew Groom fronted the media this morning, but said it was too early to comment on how the state would cope with expected massive cuts to health and education.
''We are very mindful to understand the implications for Tasmania and where appropriate we will actively take up issues advocating on behalf of Tasmania to ensure that we ensure the best possible outcome for Tasmanians,'' Mr Groom said.
The states are expected to consider asking for more GST revenue to cover the shortfall.
Mr Groom's mild response is in contrast to other Liberal premiers and state treasurers that have slammed $80 billion in cuts to health and education.
Despite being a Liberal ally New South Wales Treasurer Michael Baird described the move to shift the burden to the states as a ''kick in the guts''.
Queensland Premier Campbell Newman has called for an urgent COAG meeting which brings together all state premiers and the Prime Minister. Mr Groom would not comment on that suggestion.