Tasmanian Liberal Premier Will Hodgman has welcomed the federal budget as one that can deliver the island state the infrastructure it needs.
The budget, delivered on Tuesday night, pledged $210 million towards roads, including $130 million for a 'corridor' between Hobart and the town of Sorell to the east.
Another $35 million was inked for an urban congestion fund.
"The Tasmanian Government welcomes key investments ... which will help build the infrastructure our state needs for the future, and grow our economy," Mr Hodgman said in a statement.
Aside from roads, Mr Hodgman praised the $68 million investment in the Tasmanian Freight Rail Revitalisation Program, saying it would help get the state's world-class produce to market.
The commonwealth government's personal income tax cuts were also warmly received.
"(They) will put downward pressure on the cost of living and have a positive impact on around 200,000 Tasmanians," Mr Hodgman said.
"For only the fifth time in a quarter of a century, Tasmania's economic growth for the last financial year was higher than the nation's.
"Per capita, we are growing at our fastest rate in a decade, nearly double the national average."
A largely no-surprise budget included $56 million to progress a second interconnector between Tasmania and mainland Australia, as announced earlier this year.
