Victoria's public service wage bill will jump 7.1 per cent as the government splurges on services and abandons its spending growth target.
Tuesday's 2015/16 state budget delivered most of Labor's election promises, with billions for health, education, emergency services and roads and rail.
Up to $22 billion will be spent on new infrastructure projects but only about $6 billion has been allocated to get them underway in the next four years.
The previous government's 2.5 per cent spending growth limit target has been abandoned, with Labor deciding three per cent is a more realistic figure.
That means more money to hire nurses, teachers and paramedics, with public service spending up 7.1 per cent in 2015/16, then running at 3.4 per cent over the forward estimates.
Treasurer Tim Pallas said 96 per cent of Labor's promises were delivered in the budget, with the rest to be delivered in future budgets.
"We're restoring services, prioritising those things that are important to Victorian families," he said.
"We are going about delivering and improving services, and that will come at a cost, but a manageable cost."
Labor's "For Families" budget had money for household-level spending, including school lunches, uniforms and camps.
It also played up the time saved with level crossing removals and duplication of bridges at key suburban choke points.
But opposition leader Matthew Guy said Labor promises like the Mernda Rail extension, Drysdale bypass and the upgrades for Thompsons Road and Yan Yean Road were unfunded.
"The one road that Labor has provided funding for, the West Gate Distributor, was scrapped by Daniel Andrews only last week," Mr Guy said.
Shadow treasurer Michael O'Brien said the budget contained a hidden tax by increasing the growth of government fees and charges by higher than the rate of CPI.
There were also new taxes on foreigners - including majority foreign-owned companies - purchasing Victorian real estate.
Despite a focus on big business, VECCI chief executive Mark Stone said hundreds of smaller Victorian businesses would benefit from the budget because of their part in the supply chain.
The Australian Industry Group said the $22 billion of new infrastructure was welcome but significant investment does not pick up until 2016/17, worrying the construction industry.
Mr Pallas confirmed the $1.2 billion surplus in 2015/16 actually includes $2 billion the federal government handed over for the axed East West Link, which now has to be spent on a road project.
The planned $600 million Mernda Rail extension only got $9 million for planning but Mr Pallas said Labor was committed to building it.
SURPLUSES
* $900 million in 2014/15
* $1.2 billion in 2015/16
* $1.4 billion in 2016/17
* $1.4 billion in 2017/18
* $1.8 billion in 2018/19.
Source: Victorian government
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