Premier-Treasurer Peter Gutwein released the Tasmania Economic and Fiscal Update Report on Friday.

Coronavirus: All the latest updates on COVID-19 for Tasmania

He acknowledged Tasmania was the only state to provide an economic and budget update at this time.

"I'm not going to sugarcoat anything. We believe to move forward from coronavirus together, we first need to all know where we stand," Mr Gutwein said.

"The Treasury books paint a bleak picture, there's no other way of explaining it."

Mr Gutwein said before the coronavirus pandemic hit, the Tasmanian Treasury was forecasting in its mid-year update released in February a surplus of $11 million this year but the state was now facing a likely deficit of over $700 million.

He said Tasmania's net debt position would reach $2.35 billion by the end of the 2020-21 financial year but noted the state, because it started off holding net cash, was in a better position than other jurisdictions.

The state faces a forecast decline in economic growth of 1.75 per cent for this financial year after having the fastest economic growth in the nation at 3.6 per cent in 2018-19.

"From leading jobs growth in March 2020, we now forecast 27,500 jobs lost by the end of June and an unemployment rate of 12.25 per cent," Mr Gutwein said.

These unemployment figures do not reflect staff working reduced hours, people on JobKeeper, people stood down temporarily or people taking annual leave.

Mr Gutwein said reduced economic activity as a result of COVID-19 had impacted government revenue and government expenditure was higher as the impacts of the pandemic were managed.

"The slowing national economy will have a significant impact on our GST revenue, which we expect to be written down by $310 million this current financial year and more than $357 million in 2020-21.

"State taxation revenue will fall over this financial year, and next, by a total of $360 million."

This includes significant reductions in payroll tax ($93.5 million), conveyance duty ($58 million), land tax ($48.6 million), and motor tax ($40 million).

Mr Gutwein said Tasmania would build itself out of this challenge.

"In the coming weeks and months we are going to lay out the most aggressive construction program in the state's history," he said.

Mr Gutwein said he had tasked Treasury with reviewing the state's infrastructure program to identify projects which could brought forward and a restructured infrastructure program would be announced in coming weeks.

He said Treasury had not recommended raising taxes and he would not be drawn to comment on if public sector jobs would be cut.

The state budget will now be delivered on November 12 to allow it to come after the Federal budget.

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