State finances on track to be 'worst in the country'

The Tasmanian Liberal government is propped up by a cross bench. (Rob Blakers/AAP PHOTOS)

Australia's only Liberal government is "entirely to blame" for the deterioration of Tasmania's finances, which will become the "worst" in the country within three years.

A report by independent economist Saul Eslake has painted a bleak picture of the state's budget which could have political implications for the minority Liberal government.