The government pledged $31 million for the upgrade, with Metro Tasmania expected to tip in about $19 million through equity payments. 

Tasmania's advanced manufacturing sector will be able to bid for construction, customisation and fit out work for the fleet upgrade, which will see every Metro bus will be compliant with the Disability Discrimination Act by 2022.

Infrastructure Minister Rene Hidding said the four-year commitment highlighted the government's commitment to provide a sustainable public transport system.

"This represents the single biggest investment in public transport in Tasmania's history," Mr Hidding said. 

The fleet initiative follows Labor unveiling its ten-year, $60 million public transport strategy, which included $6 million for Metro fleet upgrades. 

Labor’s All Aboard strategy also included the establishment of a passenger transport corporation, new suburban rapid bus fleets, and works on the Hobart rail corridor. 

The government’s Metro fleet revitalisation was in addition to a $1.8 billion infrastructure spend over the forward estimates, with one tenth of that figure dedicated to newly announced projects. 

The bulk of infrastructure spending will be spent in 2016-17 and 2017-18, with more than $1 billion committed over those two years. 

Roads program expenditure totalled more than $716.3 million, with almost $200 million pledged for the Midland Highway, $12 million for shoulder sealing on the East Coast’s Esk Main Road, and $6.3 million towards improving well-known frustrations with the Great Eastern Drive. 

A number of Southern Tasmanian roads also received funding, including upgrades to Colebrook Road and the Brooker and Huon Highways.

The ongoing Royal Hobart Hospital redevelopment received funding of $457 million over the forward estimates, while $113 million was pledged to revitalise Tasmania’s education and training facilities.