Victorian budget 2024 draws mixed responses as regions feel the ...

As Victoria's state budget was unveiled on Tuesday, there were high hopes it would deliver for regional Victorians.

While it was Treasurer Tim Pallas' 10th state budget, it was the first for Premier Jacinta Allan.

Growing up in the city of Bendigo, and representing the electorate of Bendigo East in parliament, Ms Allan has long been an advocate for the 1.5 million people who live outside metropolitan Melbourne.

Despite a number of cost-cutting measures, Ms Allan told ABC Statewide Drive there was still plenty of financial support being funnelled into regional areas.

"We have a range of different ways that we support regional councils and regional communities," she said.

The premier highlighted the Regional Worker Accommodation Fund, which provided employee accommodation in country towns and regional cities where housing was scarce.

"The number one issue and the number one challenge that's facing regional communities right now … is people being able to find a home," Ms Allan said.

"A home that's affordable and a home that's close to the job that they want to stay in, or pick up.

"It's not just a problem that's confined to Melbourne."

'Limited investment in regional Vic'

The government was under pressure to deliver a "sensible" budget amid the state's rising debt.

Treasurer Tim Pallas has defended it as one that strikes a responsible balance without taking "the economic momentum out of the economy".

Ms Allan said the government's "new and refreshed fiscal strategy" would allow the economy to grow while driving down debt.

"We're proud to say we have the strongest economy in the nation," the premier said.

"How we can continue to support jobs and grow the economy is a key part of our work to provide jobs and security into the future for regional families."

Regional Cities Victoria chairperson Shane Sali said the budget offered limited investment in the regions.(Supplied: City of Greater Shepparton Council)

But Regional Cities Victoria chairperson and Greater Shepparton City Council Mayor Shane Sali had a different view.

"There is very limited investment in regional Victoria which was, to be honest, to be expected," he said.

Mr Sali has called for the reintroduction of the Regional Jobs and Infrastructure Fund.

Before it was axed in 2023, the fund helped finance key infrastructure projects in smaller towns and cities across the state.

"It's been almost impossible for local councils to get key community infrastructure projects on the table for consideration," Mr Sali said.

Mr Sali says councils in regional centres like Shepparton require greater support to build infrastructure.(Supplied: City of Greater Shepparton Council)

With a growing number of people ditching the city for a sea or tree change, Mr Sali said councils were stretched to their limits.

"How do local councils in regional Victoria get access to state funding to deliver infrastructure projects that are of critical need to a developing regional Victoria?" he said.

"We need the infrastructure investment. Local councils can't deliver that on their own."

Nationals criticise Suburban Rail Loop

Victorian Nationals Leader Peter Walsh said Labor's 10th consecutive state budget made it clear that the government "cannot manage money".

"They definitely can't manage major projects and Victorian families are paying the price," he said.

"Regional Victoria only gets about 12 or 13 per cent of the total spend on infrastructure, the majority goes into the city."

He has called for the multi-billion-dollar Suburban Rail Loop project to be scrapped in favour of greater investment into the regions.

A concept design of the Box Hill station platform planned for the Suburban Rail Loop.(Supplied: Victorian government)

"This is effectively sucking all the money out of other infrastructure projects, whether it be in Melbourne or in regional Victoria," Mr Walsh said.

"From a country point of view, the money should go into finishing hospital projects on time rather than extending them. It should go into repairing our roads."

Community pleas answered

A number of sporting clubs were offered substantial funding in Tuesday's budget.

Fish Creek Football and Netball clubrooms burnt down on November 4, 2023.(Facebook: Fish Creek Kangaroos)

Fish Creek Football and Netball Club, in Victoria's east, was granted $500,000 to aid the reconstruction of facilities that were lost during a suspicious fire in November last year.

Club co-president Ray Stefani said the funding followed months of intense campaigning and it was all worth it.

"An announcement like this today really does inspire us to keep pushing forward," he said.

"There's a great resolve amongst, not only the club, but the community as a whole, to rebuild and to come back bigger and better than ever."

Ray Stefani says the funding will allow his football and netball club to rebuild.(ABC Gippsland: Georgia Lenton-Williams)

Mr Stefani believed it was clear the campaigning had struck a cord with "the right people" and he was grateful to everyone who had reached out to offer their support along the way.

"We've got more work to do. We still need to raise more money," he said.

"But this is a great step forward and I think it really shows that we are fair dinkum about this and we are going to get this done."

Member for Eastern Victoria Tom McIntosh broke the news to the club in person on Tuesday afternoon as the budget was being delivered.

Mr McIntosh congratulated the club leaders for receiving the money in what he admitted was "a tough budget".

Residents in Mirboo North are still cleaning up after a storm hit the town in February.(Supplied: Stephen Riley)

The budget also provided $302 million to communities affected by recent floods, storms and bushfires.

It was expected to cover infrastructure repairs, as well as temporary accommodation, relief payments and mental health support for residents.

The government will also invest $156 million to support Victoria's emergency management and help prevent future bushfires.

Millions allocated to transport

Some $133 million was allocated to support Victoria's regional rail network, including operating newly delivered train stabling yards, stations and VLocity trains.

There will be additional weekday return services for the Warrnambool and Echuca lines, as well as improved bus and ferry services in several locations.

There will be additional services for the Warrnambool and Echuca V/Lines.(ABC News)

Seven regional road and bridge projects will receive upgrades, including the Dimboola and Dadswell bridges on the Western Highway, while bridges at Drouin, Warragul, Hernes Oak and Morwell will be strengthened.

The budget allocated $60.5 million regional road upgrades over the next four years, but a group representing farmers said it did not go far enough.

Grain Growers Trade and Supply Chains policy manager Annabel Mactier said the funding was a "drop in the ocean compared to what was required."

"The concerning thing is that out of the 6,000 bridges managed by the Victorian Department of Transport and Planning, approximately 1,000 of those have been identified as requiring upgrades, so there are so many other bridges that require urgent upgrades."

A regional healthcare investment

The budget allocates $44 million towards expanded facilities at Latrobe Regional Hospital in Gippsland, which will have capacity for 44 inpatient beds, 14 medical and surgical beds and a new emergency department resuscitation bay.

The Victorian government unveiled its state budget on Tuesday.(ABC News: Gabriela Rahardja)

It also set aside $5.4 million to establish a mental health, alcohol and other drugs emergency department hub at the Ballarat Base Hospital.

The estimated completion date for the Maryborough Hospital redevelopment, however, was extended to 2026. It was initially expected to be completed by the end of this year.

The state government is continuing to plan the new West Gippsland Hospital and redevelopments for the Wonthaggi hospital.

It is continuing to build community hospitals in various locations as part of a six-year promise, but one of the regional hospitals in Torquay is being reviewed and may be scrapped.

New schools and upgrades promised 

In regional Victoria, four new primary schools will be built across Greater Geelong, Wodonga and Mitchell Shire.

The budget allocated $40 million to upgrade and modernise seven schools in locations that include Traralgon, Beechworth, Cobden, Eildon, Paynesville and Swan Hill.

The Victorian Homebuyer Fund will be expanded, by increasing the regional price cap to $700,000 and extending the joint applicant threshold to single parents.

The fund contributes to the purchase price in exchange for a proportionate equity interest in the property, to help people purchase a home.