Treasurer Peter Gutwein has declared the budget is back on track, with funds flowing to services with a "firm eye to the future".
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Handing down his third state budget on Thursday, Mr Gutwein reminded Tasmanians the document had to deal with large financial shocks, including lost GST of $500 million, a $100 million write down from Hydro Tasmania and a $30 million hit from the January bushfires.
The budget will reach a surplus of $77 million in 2016-17, but drops back into a $60 million deficit in 2018-19.
While hailing no new taxes or saving measures, a promised reduced MAIB motor tax set to begin next year has been deferred until the budget is in a stronger position.
Mr Gutwein said the decision had not been taken lightly and a deferral was the responsible thing to do.
The Northern Cities project was a big winner in the budget, with the government boosting it by $30 million.
The project encompasses the relocation of the University of Tasmania in Launceston and Burnie, as well as the Devonport Living City project.
Launceston will benefit from $75 million, and $15 million will go to the North West.
The total project funding now fetches $90 million, and an announcement by the federal government to match a Labor promise of $150 million towards the UTAS relocation is expected any day.
HEALTH:
· $7.9 million for upgrade of Launceston General Hospital children's ward, $200,000 of which will flow next financial year;
· $30 million for the implementation of the One Health System reforms, which will likely go towards creating a North-West maternity centre and converting the Mersey Hospital into a 24-hour dedicated elective surgery centre;
· $5.4 million for emergency department initiative Patients First;
· $1.6 million to support preventative health strategy Healthy Tasmania.
EDUCATION:
· $1.48 billion into education and training;
· $113 million for school infrastructure upgrades, including $3 million for TasTAFE;
· $134 million to deliver full six years of Students First, Gonski, funding;
· $11 million for targeting literacy and numeracy programs;
POLICE:
· $10 million on the recruitment of 113 additional officers;
· $6 million on upgrading police housing statewide over four years in remote areas with $1 million of that to be spent on the West Coast;
· $2 million on a police buildings upgrade program;
· $8.6 million on a new police marine vessel to be commissioned by June 2017.
JUSTICE:
· $4.7 million over four years to fund 20 extra beds and staff at the minimum security Mary Hutchinson Women's Prison;
· $693,000 for upgrades at Ron Barwick Minimum Security Prison;
· $575,000 for a Custodial Inspector position, a new position that will look at issues with management, control and security of the state's prisons and youth detention centre, and prisoner welfare;
· $1.2 million a year over four years on compulsory treatment of sex offenders.
INFRASTRUCTURE:
· $716.3 million Roads Program expenditure over the forward estimates;
· $180 million in new infrastructure projects;
· More than $114 million in school infrastructure upgrades;
· $31 million for 100 new Metro Tasmania buses.
TOURISM:
· $15 million for the Cradle Mountain Master Plan;
· $6.3 million to fund capital works for the Great Eastern Drive;
· $1.25 million for aviation market development;
· $5.7 million for Parks infrastructure.
PLANNING:
· $1.9 million will be spent on for "a one-stop shop" development approvals system, iPlan. The system will provide up-to-date access to applicable planning and building rules;
· $400,000 to continue planning reform work.