The Tasmanian government now expects the 2015/16 budget to deliver an operating surplus of $62.7 million compared with the original budget prediction of a $58.5 million deficit.
The turnaround of more than $120 million was revealed in the Preliminary Outcomes Report 2015/16 released on Monday.
"This represents the first net operating surplus achieved since 2009/10 and the best result since 2005/06," Tasmanian Treasurer Peter Gutwein said in a statement.
"By getting the budget back under control we can sustainably fund new and important service delivery to the community, in health, education and helping the most vulnerable."
Monday's preliminary outcome is an improvement of $153 million from the estimated deficit of $90.3 million presented in the 2016/17 budget published in May.
Preliminary revenue from transactions is $71 million above the May estimate, while grants revenue is $65.2 million higher, including additional GST revenue of $16.9 million due to an overall increase in the GST pool for 2015/16.
