Since last year, the government has increased its budget to deliver health services by $1 billion, taking its total spend over the next four years to $12.1 billion.

Health Minister Jeremy Rockliff said the government is spending an average $8.3 million every day across its health system.

A key priority includes the opening of 298 major hospital beds by June next year at a cost of $63.5 million, but a majority of the $394 million total allocation for beds will be spent in 2025 and 2026.

The government is also addressing long medical waiting lists, with a $10 million spend this year and $10 million the following year, to reduce wait times with nurse-led clinics.

Treasury promised that this $20 million to reduce wait lists will ensure Tasmanians who have been waiting the longest can access outpatient services as soon as possible.

This funding however will be shared with a portion of the funds going towards the development of alternative care options for muscular, arthritis and other pain services.

A particular focus on endoscopy services is also found in the budget with the government hoping to reduce wait times by offering an extra 22,000 procedures.

This will cost $9.5 million for the next four years.

More health care in the home initiatives will be offered with $8 million towards the GP After Hours service.

The digital transformation project also continues with $41 million over the next two years to virtual home care support programs.

Finally, to back up the budget spend on health services, the government has allocated $682.9 million over the next four years to health infrastructure.

This will upgrade hospitals, ambulance stations, including new rural stations at Longford, Beaconsfield and Queenstown, and mental health centres.

It includes funds for the 10-year, $580 million Launceston General Hospital redevelopment, $87.1 million for the North West Hospitals masterplan, and $120 million for new mental health precincts in Launceston and Burnie.

Mental health also figures strongly in the budget, with a total of $46.3 million is allocated to mental health over the next four years.

The government's Mental Health Reform program is getting a $6.6 million spend that promises to improve services for Tasmanians with severe and complex mental illness.

A number of community organisations offering mental health support for drug and alcohol addictions, eating disorders, homelessness services and suicide prevention have all received funding.

This includes $1.2 million for services such as Rural Alive and Well, and the Butterfly Foundation, $450,000 for the Mental Health Council of Tasmania for lived experience workers, and $100,000 for East Devonport's Pathway Shed.

The Police, Ambulance and Early Response (PACER) program will also be rolled out in the North West.

Mr Rockliff said every dollar spent on mental health was carefully selected to help Tasmanians.

"Our investments prioritise our best-practice approach to building a contemporary integrated model of mental health and alcohol and other drugs care across the state," he said.

"So all Tasmanians can get the right support for their needs at the right place and the right time."

Tasmania's construction workforce is set to be boosted with $4 million in state funding going towards the Build Up Tassie program.

This sweetener is one of few funding perks in Homes Tasmania budget.

The Private Rental Incentive Scheme, that provides financial incentives for property owners to lease their homes for social housing, has had its funding increased by $1.54 million.

This is an extra addition to the $6 million already allocated.

Treasurer Michael Ferguson said the latest budget delivered on its social and affordable housing reforms and its $1.5 billion plan to provide 10,000 homes by 2032.

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