Tasmania's government will release an interim budget amid warnings immediate "corrective action" is needed to address ballooning debt.

The island state's original 2025/26 budget, handed down in May, never passed parliament because a snap election was called.

It forecast net debt more than doubling from $5.3 billion in 2024/25 to $10.8 billion in 2028/29, a steeper trajectory than tipped in the previous budget.

Treasury in June flagged a more severe scenario, saying net debt would hit $13 billion by 2027/28 unless the government undertook immediate corrective action.

Tasmania was spending more than it earned and more revenue raising and decreases in expenditure were required, Treasury said.

The government, however, has said it won't increase taxes but remains committed to cutting 2500

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