The state government will prop up the health budget with an additional $558 million over four years and has pledged to quarantine the health service from further budget savings.
The Treasury Department on Tuesday released the Revised Estimates Report 2019-20 which showed the state's net operating balance had been reduced to $10.6 million for 2019-20, from the expected surplus of $57.4 million.
The surplus for 2020-21 was revised down to $45.4 and $19.3 million in 2021-22.
Nebt debt for 2020-21 was reduced by $42.6 million from the budgeted expectation of $643.1 million.
The health service will no longer have to bear the brunt of the government's so-called agency efficiency dividend strategy with savings to be capped at $15 million over the budget forward estimates.
The report said this would be offset by additional government business dividends.
The report contained $746.1 million in new expenditure commitments and $191.4 million worth of new revenue.
New revenue came from special dividends of $70 million from Hydro Tasmania and $20 million from Sustainable Timber Tasmania as well as $59.8 million in additional government business dividends to support a reduction in agency savings.
In other news:
GST revenue to the state over the budget year was projected to decrease by $272.8 million.
Premier Peter Gutwein said the additional $150 million investment in health this year would help cater for demand at hospitals, improve health outcomes and maintain staffing levels.
"Demand has increased dramatically in the last two years," he said.
"We've seen a new normal in terms of demand in health so it's important that we invest into health."
Labor's finance spokesman David O'Byrne said the government had raided two of its business enterprises to prop up the budget.
"That's not a strategy, that's panic stations," he said.
"Every indicator is deteriorating over the forward estimates."
Mr O'Byrne said the government had underinvested in health at the start of the financial year and had attempted to make up for it now.