Treasurer Eric Abetz said the Budget locks in a significant fiscal milestone, with Tasmania set to return to a net operating surplus within two years and reach peak net debt in 2028-29, after which it begins to decline.
The Budget forecasts a net operating surplus of $192.8 million in 2027-28.
"Now is the right time to start paying down the debt and focus on our future generations," the Treasurer said.
"We are restoring the Budget to a surplus within two years and projecting to reduce debt over time."
The Treasurer said returning to a surplus is central to securing Tasmania's long-term financial strength and ensuring future generations are not burdened with unsustainable debt.
"Achieving a surplus gives us the headroom we need for the future. It reduces the need for borrowing, lowers borrowing costs and gives us greater capacity to invest in the services Tasmanians rely on."
The Treasurer said the Government's approach ensures that debt is managed responsibly, with a defined peak and a clear trajectory downward.
"We will reach peak net debt in 2028-29, after which net debt will begin to decline. That is a disciplined and responsible plan that secures Tasmania's financial future."
The Treasurer emphasised that this strong fiscal position is being delivered while continuing to invest in essential services and support the community.
"Two-thirds of government expenditure remains focused on core services such as health, education and public safety," he said.
"We are strengthening the Budget at the same time as we continue delivering for Tasmanians."
The Treasurer said restoring the Budget to surplus and putting debt on a downward path will strengthen Tasmania's financial resilience in an uncertain economic environment.
"We are securing Tasmania's future by ensuring we have the flexibility to respond to challenges and supporting our community now and into the future," the Treasurer said.
"This Budget delivers disciplined, responsible economic management, returning to surplus, reducing net debt and building a stronger Tasmania."
