The Department of Justice should be quarantined from the state government's $450 million cuts, Opposition Corrections spokeswoman Ella Haddad said.
The comment follows revelations in The Examiner five prisoners have been incorrectly released from Risdon Prison since November.
"More incorrect releases in the prison system only confirms the government is failing to do its most important job: to keep Tasmanians safe," Ms Haddad said.
"We know the government like to talk tough on crime - but the stats and the stories about criminals being released before their time tell a different story."
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Twelve prisoners have been incorrectly released from Risdon in the past five years.
Attorney-General Elise Archer said the government was investing money into prisons, but that the cuts would still be applied to the justice department.
"The Department of Justice is subject to an efficiency dividend as are all Tasmanian government departments," she said.
"Tasmanians expect their government to manage their taxpayer dollar appropriately, and as such a modest cross-government efficiency dividend is in place.
"However, the government is investing significant extra resources into the corrections system including recruiting a 90 new correctional officers over the next year and $350 million in prison infrastructure."
The incorrect releases have been blamed on administrative error.
The errors are "distressing, and the government should be ashamed," Ms Haddad said.
"The Liberals give with one hand and take away with the other," she said.
A new Sentence Management Unit, responsible for coordinating releases and court appearances, aspects of the prisoner classification process and applications for prisoner leave, is due to be fully operational by July next year, a Department of Justice spokesperson said.
The government is also putting $24.5 million into IT system Justice Connect, to digitise the paper-based or unconnected administration between departments related to corrections.