State Liberal Treasurer Michael Ferguson will on Thursday hand down the 2023/24 budget, almost two weeks after the government was plunged into minority when two MPs quit the party.
It will reportedly include $12 billion over four years to improve an ailing health system.
The figure is more than a third of the state's overall spending and $900 million more than what was allocated in last year's budget.
"We are investing in innovative programs and initiatives," Premier Jeremy Rockliff told News Corp.
"(That means) ... Tasmanians can access the healthcare they need in their communities, closer to where they live, as well as boosting resources in our hospitals for those needing acute care.
"Investments will focus on providing targeted support for innovative, community-based initiatives that are delivering positive results for Tasmanians.
"Tasmania has many grassroots health and wellbeing initiatives that are doing great work in our community and the government is going to back these organisations in."
Mr Ferguson earlier this week flagged economic headwinds, including a write-down of some $940 million in GST revenue over four years.
"(Despite) the GST reductions in revenue to our state that were outlined in the recent federal budget …. this budget does chart a path to surplus," he said.
Last May's budget predicted a return to a slender $19 million surplus in 2023/24.
Mr Ferguson said the budget would include outlays towards plans for a contentious $715 million stadium in Hobart as well as the state's AFL team.
The state has pledged $375 million to the stadium, as well as $12 million per year over 12 years towards a team and $60 million for a high-performance centre.
Mr Ferguson said the budget would also include $347 million over four years to help people on lower incomes pay water, sewerage, power and local government bills.
He said health and education would account for 60 per cent of the budget spend, which is roughly $8 billion in total.
According to last year's budget, the state is set to carry almost $5.2 billion of net debt by 2025/26.
It is Mr Ferguson's second budget as treasurer for the Liberals who have been in power since 2014.
The government will also spend $1.5 million on trialling an affordable rental initiative.
Under the program, the government will rent properties on the private market and provide them to eligible low-income Tasmanians at a reduced rate.
The government has just 11 of 25 lower-house seats after John Tucker and Lara Alexander quit the party and became independents.
They cited concerns with transparency surrounding the Hobart stadium and AFL deal. Both have promised to support the budget and vote it through parliament.
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