Vic blasts Turnbull government over budget

Victoria has blasted Prime Minister Malcolm Turnbull over infrastructure funding in the federal budget and is now reviewing a regional rail program.

Malcolm Turnbull is a Sydney-centric prime minister who is "ratting" on a deal that would fund a Victoria regional rail overhaul, Premier Daniel Andrews says.

Tuesday's federal budget includes $1 billion for the state's infrastructure, including $500 million over three years to be used for regional rail.

But it's not the $1.45 billion Victoria says it deserves under a deal done between the federal government and the previous state government that was supposed to reward the state for the sale of Melbourne Port lease.

Mr Andrews trumpeted a massive regional rail revamp ahead of last week's Victorian budget but that was dependent on getting all of the $1.45 billion from the federal government.

"Now we're going to have to go through each and every one of those projects...because of the fact that Malcolm Turnbull has ripped off Victoria by ratting on his deal with our state," Mr Andrews told reporters on Wednesday.

That rail project is what the state has been shouting loudest over since the federal budget was handed down.

But the state government is going alone on most of the other big infrastructure works across Victoria.

Still, the government claims it could do so even more if it got a larger share.

Federal Treasurer Scott Morrison slapped down Victoria's protests, saying it was getting federal money, and more would be available when it had projects to actually put forward.

"There's over a billion dollars in infrastructure funding for Victoria in this budget, that comes on top of $1.5 billion that I talked about at last year's budget," Mr Morrison told ABC 774.

"We're still committed to the East West Link if there is a government in Victoria that wishes to build it."

The state could also get more infrastructure funding if it agrees to sell its share of the Snowy Hydro energy scheme and it is getting an increase in its GST share.

State Treasurer Tim Pallas called it a "contemptuous" federal budget, but he did not want to be universally critical of it.

"There are certain elements of it that are certainly an improvement on three years of ideology winning over economics," he told reporters.

"At least there's a touch of pragmatism in this, if only the pragmatism extended to the state of Victoria."

Opposition leader Matthew Guy says he feels Victoria has been short changed by the federal government for 25 years, but he still took a swipe at the state government.

"I think it's a shame that a lot of projects that were traditionally funded by the state government now have to be funded by the federal government to get on with it," he said.


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Source: AAP


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