Give us some new money, Vic tells feds

Victoria wants some new infrastructure funding in the federal budget after getting two re-announcements of money it already had.

a city loop train at Newmarket Station

Victoria is to get over $850 million in federal funding for the Metro Rail project in Melbourne. (AAP)

After being given $2.3 billion it already had, Victoria is keen to see some actual new infrastructure money in Tuesday's federal budget.

The upcoming budget ties $857 million from the asset recycling scheme to the Melbourne Metro Rail project.

"Let's be very clear though - this is not new money, this is money that was always going to come to Victoria," Public Transport Minister Jacinta Allan told reporters on Monday.

"This money was coming to Victoria as a result of the asset recycling scheme."

Under the 2014 scheme, 15 per cent of the sale of the Port of Melbourne lease would be matched with federal funds.

"They've previously said that the funds out of the asset recycling scheme, that they wouldn't be dictating which projects that money would be going to," Ms Allan said.

"They clearly are now, so we'll be having further discussions about those funds."

Melbourne's port lease sale is expected to fetch up to $7 billion, so the federal contribution could rise.

Canberra also announced $1.5 billion for road and rail upgrades in Victoria, but again, it was with money already sitting in the state's budget from the dumped East West Link.

Victoria has been arguing for an infrastructure funding injection - it gets just nine per cent of federal infrastructure funding while NSW gets 36 per cent.

One recently flagged project could be the missing North East Link, which would complete Melbourne's outer ring road through the northeastern suburbs.

The opposition and the Greens argue the $857 million should be used to extend the Metro to South Yarra station.


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Source: AAP


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