Business is backing the Tasmanian Premier's decision to increase the state's debt burden in a bid to create jobs.
The Government is spending about $25 million on business grants, help for first home builders, funding small infrastructure projects and introducing a payroll tax rebate.
The package aims to create more than 3,000 jobs.
It is part of $76 million in new spending which has helped push up the deficit by $44 million.
The chamber has argued a budget surplus is necessary for business confidence, but its chief economist Phil Bayley says the package is timely.
"It's never ideal for Government's to be going deeper into debt but sometimes it is unavoidable and reflects external circumstances," he said.
"In this case that appears to be largely the case although we will need to work through it in coming days.
"It is appropriate for the Government to undertake small, timely, temporary and targetted spending initiatives if they can boost the economy without feeding into ongoing spending growth." Master Builders Tasmania says new money for housing construction will tide the industry over until the state economy improves.
The Government is offering $8,000 to people who build a new home under its new job creation package.
Builders' spokesman Michael Kerschbaum says home construction is at a nine-year low and the support is welcome.
"So this won't benefit investors, it won't benefit second, third, fourth homeowners." "It will only benefit those people who are considering entering into the market.
"So what we do expect is those other groups who won't get the benefit will probably come on board after the boost and when we expect probably a more broader economic recovery over the course of 2014." Departments struggle It has been revealed several government departments are struggling to work within their budgets.
The forecast deficit increase of $44 million to $327 million is contained in a .
Falling state revenues, mineral royalties, fines and fees and increased government spending have been partly offset by a $55 million boost in GST receipts.
The forecast for economic growth has been revised down to 1 per cent this financial year, but it is expected to grow to 2 per cent by 2014-15.
Unemployment is expected to hover around 7 per cent The budget update says Treasury is working with several agencies to help them overcome a range of so-called "budget risks" due to rising costs and demand for services.
The report says it is too early to say how these pressures will affect the budget.
Estimates of the financial gains from the electricity sector overhaul are also yet to be calculated.
The planned changes include the sale of Aurora Energy's retail arm.
Under pressure Tasmania's Children's Commissioner says extra funding for child services acknowledges the system is under pressure.
The Revised Estimates Report allocates an extra $36 million over four years for out-of-home care and child protection services.
Commissioner Aileen Ashford says the extra $7.7 million this financial year will not go far.
"What it does tell us is that we have got an increase in demand in that system," she said.
The Community and Public Sector Union's Tom Lynch says child protection workers have been under pressure for years.
"It would be particularly good to be able to put in some professional senior staff to make sure that case loads are manageable." A spokesman for the Children's Minister Michelle O'Byrne says the total child protection budget is now $417 million over four years.
Corrective Services will get an extra $10 million.
The Corrections Minister, Nick McKim, says the money will fund community corrections programs being offered as an alternative to imprisonment.
Mr McKim says demand for the service has doubled.
"[It] is a credit to the service we provide and evidence that judges and particulalry magistrates have a very high level of confidence in the programs that we provide in community corrections." "Keeping someone in prison cost around about $300 a day, managing someone through the community corrections system costs about $12 a day."