Tasmania's Liberal government has flagged greater cost-cutting measures and additional public sector job losses as it grapples with ballooning debt.

Treasurer Eric Abetz on Thursday handed down his 2025/26 interim state budget, after the original May version never passed parliament because of a snap election.

It forecasts net debt to grow from $5 billion in 2024/25 to almost $10.4 billion by 2028/29, essentially in line with the original budget.

Mr Abetz said several factors had "conspired" to make a challenge of returning to pre-pandemic spending levels including two early elections, COVID-19 itself and payments to abuse survivors.

He also took aim at the federal government, saying Canberra had chronically underfunded health services in the state.

Delivering his first budget as state

See Full Page