Labor treasury spokesperson Scott Bacon said Sunday the budget had been "smashed to pieces" by recent announcements including new drug and alcohol and adolescent mental health facilities, emergency homelessness accommodation, the Healthy Communities Fund and a September "NBL blitz".

"After announcing that the budget is heading into $1.1 billion in debt, the government's surplus has been squandered in less than two months," Mr Bacon said.

"The Treasurer has to now finally tell the truth - that he's recklessly spending much more than the government earns. This is something he and the Premier promised they would never do."

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Mr Bacon said the government had also told department secretaries where $450 million in efficiency dividends would be coming from, "including from crisis areas like health and housing", but were hiding the details from Tasmanians.

Asked if Labor's claims were accurate, Mr Barnett said: "No, they're not." He also denied the surplus had been squandered.

"Labor has no credibility when it comes to managing our economy," Mr Barnett said. "When it comes to managing a budget, we've delivered three surpluses and plans for surpluses going forward. This is a government that has delivered."

He said the government had delivered more than 12,000 jobs and planned for another 10,000. "We want to see a growing economy and a sustainable budget."

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