Treasurer John Lenders has released the 2009-2010 Budget, which centres on a record $11.5 billion infrastructure injection to the state.
With the unemployment rate forecast to rise to 7 per cent this year and 7.75 per cent through to 2013, Mr Lenders says it is vital the government kick-starts infrastructure projects to create up to 35,000 jobs.
To fund the infrastructure projects, the Budget is forecasting an increase in the state\'s net debt to about $16 billion by 2013, while growth is tipped to be slow for the next year at 0.25 per cent.
The Budget is forecasting a surplus of $163 million in the 2009-2010 financial year. Over the three years to 2013, the government is expecting that surplus to rise to $349 million a year.
Mr Lenders says due to billions of dollars in additional Commonwealth funding, the government\'s income has escaped the ferocity of the global recession.
"The government support has made the difficult task of keeping a Budget in balance easier than it would have been," he said.
The Budget\'s centrepiece is the fast tracking of job-creating infrastructure projects across the state, with most of the jobs to be created to be in the construction industry.
Other big spending sectors in the Budget are health, education and social services.
More than $3 billion will go to the Victorian Transport Plan to upgrade road and rail networks.
The government will spend $650 million for 20 X-Trapolis trains; $562 million to extend the Epping line to South Morang; $204 million to electrify the Sydenham line to Sunbury; $60 million for a tunnel at the Nunawading level crossing; and $112 million to improve public transport options in the Manningham area.
The government has also allocated $354 million over four years to the Peninsula Link, while $13 million will be spent on noise walls on major arterial roads.
Five million dollars will be put towards buying up to 50 new trams.
Another $925 million is going towards A Fairer Victoria package to assist vulnerable Victorians, including mental health services, disability services, social housing, autism support and assistance for senior Victorians.
Victoria Police will get a record $1.9 billion in resources.