Of the funding, $157.4 million will be directed towards health, $20 million towards Communities Tasmania to provide extra money for the out-of-home care system, and $5.5 million towards the Tasmanian Prison Service to cater for current prisoner numbers and extra operational costs.

There will be $35 million to meet the costs incurred by fighting the major bushfires this year.

Of the health funding, $95 million with go towards meeting additional demand and activity in the state's public hospitals.

There will be another $5 million allocated towards the Royal Hobart Hospital's emergency department to provide for additional staffing and $5 million for additional staffing within Ambulance Tasmania.

Treasurer Peter Gutwein said the state's hospitals have been under sustained pressure with more presentations since the 2017 flu season.

"The reason we have put additional funding in the budget is because that demand didn't abate," he said.

The Royal Hobart Hospital redevelopment project will receive an additional $52.4 million.

The extra money for the state's out-of-home care system will go towards services such as clinical psychology, assessment counselling, respite care, client education, child care and health.

The revised estimates report for the 2018-19 budget, released in January, indicated the fiscal document would need an extra $182.2 million.