The federal budget delivers Tasmania's promised $730 million to fund the Mersey Community Hospital for the next decade but lacks other big-ticket items for the island state.
Health Minister Greg Hunt says the $730.4 million secures the Mersey hospital's future for the coming decade.
"Ownership of the Mersey will transfer to the Tasmanian government from 1 July 2017 - as part of the largest one-off healthcare funding commitment from the Commonwealth to the state," he said.
When the funding was announced in April, Tasmanian Premier Will Hodgman said the payment was the biggest single cash transfer from the federal government to the Tasmanian government.
The hospital in Tasmania's north-west has had no long-term funding agreement since the Commonwealth bought the Mersey in 2007 amid community concern about the downgrading of services.
The Commonwealth is providing the funds upfront so the Tasmanian government can run the hospital, in the same way as other public hospitals operate.
The budget papers highlight two major Tasmanian road and rail projects: the continuing $400 million commitment to the Midland Highway project with $96.5 million provided in 2017/18; and another $12.8 million as part of the $59.8 million commitment to freight rail revitalisation.
The budget also continues the Launceston city deal, the centrepiece of which is the jointly-funded $260 million relocation of the University of Tasmania's main campus into the city centre.
