Victorian budget aims to 'put patients first', says state government

With the federal election only weeks away, both Treasurer Tim Pallas and Agriculture Minister Mary-Anne Thomas took aim at the federal government, which they said was "short-changing" Victorians.

"Funding Victoria is not foreign aid," Mr Pallas told the media in Melbourne on Tuesday.

"This is simply what Victorians are entitled to as Australians.

"The recent federal budget revealed Victoria's share of new infrastructure spending would be mere scraps - less than 6 per cent of new funding - despite us having 26pc of the nation's population."

Mr Pallas said there were more than $5.7 billion in regional initiatives in the budget papers..

"The Victorian economy received an awful shock due to the pandemic, as did the jurisdictions around the world," he said.

READ MORE: What the Victorian budget contains for agriculture

He said the Victorian economy had bounced back "even faster" than predicted.

"The upswing in the Victorian economy has been nothing short of spectacular," Mr Pallas said.

"At 4pc, the statewide unemployment rate is at its lowest since current records began.

"The regional unemployment rate is even lower, at 3.2pc."

But the budget forecasts the 2021-22 operating deficit of $17.6bn will drop to $7.9bn next financial year, although net debt is expected to pass $167 billion by July 2026.

The government predicts to return to a surplus of more than $650m by then.

The budget sets aside $12 billion for Victoria's health system, with $1.8b for school infrastructure.

Mr Pallas said the budget gave Victorian healthcare workers the "extra pair of helping hands" they needed.

"This is a budget that puts more than $12 billion into hospitals and healthcare our state needs and the Victorian workers who will deliver it," Mr Pallas said.

The Regional Health Infrastructure fund will be boosted by $300 million, with upgrades to operating theatres and medical equipment.

Ms Thomas said it was a "targetted budget", which had a focus on key capital projects but federal help would be more than welcome.

"We have become very accustomed to not receiving any funding from the Morrison federal government and this has become hugely disappointing," she said.

"We have a treasurer, who might be Victoria, but he is not for Victorians - and I think the people of Victoria can see right through that.

"This is a Labor budget, a budget that invests in hospitals and healthcare that our state needs and the Victorian workers that we need to deliver that first-class health service."

The government said another $101 million would be set aside for intersection upgrades, new overtaking lanes and roundabouts on key regional roads and highways.

It will also spend $780m on road maintenance works, across the metropolitan and regional road network.

That includes routine maintenance, road resurfacing and bridge strengthening.

The government claims the road maintenance blitz would include 'record asset expenditure of $187m on rehabilitation, drainage renewal and bridge works.

Last year, the government set aside $754.9m, which it said was above the three year average of $745.25m.

But the opposition said the government had cut $230.3m, or 18pc, from road maintenance in the last two years,

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The government acknowledged agriculture was worth $17.8b to the Victorian economy, producing almost one-third of Australia's total agricultural value.

The government would invest a further $2.9m to support agribusinesses across Victoria reach new markets and grow sales.

The budget contains funding for the Drink Victoria campaign and Vic House, Shanghai, Victoria, to give agricultural producers and exporters an in-market space to showcase their products.

There was also a new Victorian Grown initiative, to get more locally produced food and drinks into business and onto the state's tables.

Another $1.8m will be set aside, over the next four years, for biosecurity, with $12m for innovative projects in Horsham, including glasshouses and an incubation hub.

The government has again extended the Mode Shift Incentive Scheme for another year, providing $3.5 million to four rail freight providers, three based in Victoria and one in NSW.

The government said it was also intending to invest $181m in what it described as 'critical' maintenance works on freight lines in regional Victoria.

It also set aside a further $115m for completion of the Murray Basin Rail Project, with $262m remaining expenditure of the total estimated investment of $794m.

The budget papers point out completion date 'will be disclosed following completion of the procurement process.'

The government has also announced $6.1m funding for planning for the Western Intermodal Freight Terminal at Truganina.

READ MORE:

A further $30m would be invested in the Regional Jobs and Infrastructure Fund, to help businesses create more jobs in regional Victoria, support community projects and help councils build infrastructure.

A further $7.5m had been set aside for the Latrobe Valley Authority to help develop a transition plan to support the region, through the power station's planned closures.

The government also announced it would spend $1.5m to explore the co-location of the CSIRO agrifood research and development capability with AgriBio at La Trobe University.

Ms Thomas said $250 million would be spent on 12 more VLocity trains, $196m to replace and expand the Goulburn Valley Mental Health service, Shepparton and funding for further planning for new facilities in Ballarat and Wangaratta.

There was also money for public sector aged care facilities in several regional centres.

She acknowledged labour force shortages were being experienced, right across rural and regional Victoria but they were not uniform.

"Our government invested more than $84m to support the horticulture and wider agriculture sectors, over the last few years," Ms Thomas said.

"In terms of visas, we need to work cooperatively with the Commonwealth government on that.

"As we see international students and backpackers come back, some of that will solve some of those challenges that regional Victoria is experiencing."

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