Victoria signals big-spending budget

Victoria's big-spending ways look set to return after a decade recovering from the Global Financial Crisis.

A Metro train approaches Parliament station in Melbourne

The Victorian budget, to be unveiled on May 5, contains $1.5bn for a public transport overhaul. (AAP)

The good ol' days are back in Victoria with a $1.5 billion rail project announcement just the start of the 2015 budget spending.

Premier Daniel Andrews predicts a strong surplus on top of the billions of dollars worth of election promises Labor will deliver in the May 5 budget.

He announced $1.5 billion for planning, design and land acquisition for the Melbourne Metro Rail project, which will put a tunnel 10 metres under Swanston St.

The premier would not be drawn on whether there would be any new taxes in the budget, although he promised not to introduce any before the election.

"We will honour each of the commitments that we have made and in some areas where we can ... we might even do a bit more than we said we'd do," he told reporters on Tuesday.

The previous coalition government planned for a $3 billion surplus in 2015/16, while Labor's pre-election costings predicted a $2.29 billion surplus.

Opposition Leader Matthew Guy said the government couldn't explain where it would get the $11 billion it needed to build Metro Rail.

"Labor have historically found it very difficult to manage projects well," he said.

Mr Andrews has indicated a willingness to borrow money to fund infrastructure projects, given interest rates for government debts are so low.

Labor promised to remove 20 level crossings in its four years of government, with another 30 to follow in the next four years.

After dumping the East West Link road tunnel, Mr Andrews has also said the government is looking at alternative road projects to ease congestion.

Labor also promised $510 million to rebuild government schools and $320 million to help TAFEs, but Education Minister James Merlino cried poor over Gonski funding.

Mr Merlino said the previous government left an $800 million shortfall in education funding, as well as short-changing schools $53 million in 2014/15.

But Mr Guy said the government was going through a difficult negotiation with education unions, and had not produced any evidence for the claim.

"James Merlino has simply made it up," he said.


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Source: AAP


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