A 50 per cent increase in annual arts funding was announced as part of the 2021-22 state budget drop on Thursday.
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The budget will inject an additional $5 million into arts funding over the forward estimates including $1.2 million a year to support Tasmanian arts organisations and $200,000 to support Tasmanian freelance artists.
Encore Theatre Company co-founder Belinda King said the increase would be welcomed.
"If the pandemic situation is ongoing, no doubt there would be many arts organisations that would like to see those elements of support [such as the Live Performance Support Program] extended," she said.
Arts Minister Elise Archer said the budget delivered on the commitment to provide support to the cultural and creative sector.
"Our suite of initiatives have been specifically developed to support an incredibly diverse sector and ensure that our artistic industries can continue to engage, challenge and inspire Tasmanian audiences, as well as national and international markets into the future," she said.