The federal government is taking back $1.5 billion it promised for Victoria's now scrapped East West Link.
However, Canberra insists the project is not dead and it will provide $3 billion to the first Victorian government willing to build it.
The federal budget includes the return of $1.5 billion in funds already provided for the project, marking it as unspent funding from the Victorian government.
Transport Minister Warren Truss is standing by the Link project as a "contingent liability" in the budget, despite the state government scrapping the project.
"Clearly, the Victorian government has abandoned responsible governance and created sovereign risk, which means the East West Link is being mothballed - delayed but not dead," he said on Tuesday night.
"The Victorian government will waste over half a billion dollars not to build this world-class project but the East West Link may still be reinstated at a later date by a government willing to do the right thing by the people of Victoria."
Victorian Treasurer Tim Pallas says the federal government is playing games and Prime Minister Tony Abbott should stick to his word and contribute $1.5 billion to the alternative Western Distributor proposal.
"We expect the prime minister to keep his word and contribute the $1.5 billion to a West Gate alternative as promised," he said.
"Victorians are simply not interested in more silly games from this federal government."
Mr Pallas said the government expected the Western Distributor proposal to be ready to go by the end of the year.
Mr Truss said the federal government still regarded the East West Link as a project of national significance.
However, the federal government would invest in infrastructure if the state could come up with credible options, he said.
Mr Abbott has said he still wants the East West Link built but noted the Western Distributor was similar to the plan for the western section.
"Three billion dollars is available for East West Link and if they want to build the western half of East West Link obviously we put $1.5 billion up towards that," he said last week.
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