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Victoria unveils big-spending 2016 state budget

Infrastructure projects, regional Victoria, domestic violence prevention and the police are some of the major winners from the Andrews government’s 2016 state budget.

Victorian Premier Daniel Andrews and Treasurer Tim Pallas unveiled a series of big-spending projects as part of the budget, highlighted by $2.9 billion allocated for the Melbourne Metro Rail project.

The plan for train stations to be built under the CBD was also given a commitment to be fully funded ($10.9 billion) by Victoria into the future.

Despite that, the budget forecast a surplus of $2.9 billion for the 2016-17 financial year and $9.2 billion over the next four years.

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Mr Pallas pledged the infrastructure program the government had devised would be first class.

“This government is going to make very substantial investment in infrastructure,” he said. “This is a budget that’s all about jobs and of course building infrastructure is a key component of our jobs strategy.”

Following the Royal Commission into Family Violence, more than half a billion dollars of funding from the budget would deliver 65 of the 227 recommendations it made.

tim pallas

Victorian Treasurer Tim Pallas branded it a ‘get on with it’ budget. Photo: AAP

The Western Distributor toll road would also receive $1.46 billion funding over four years. It is the controversial alternative to the dumped East-West Link, which was championed by the former Coalition government.

Mental health was also a spending priority. There will be $356 million spent on mental health services, including $27 million for suicide prevention programs.

Along with $28.5 million for a trial of medicinal cannabis, and $335 million to cut elective surgery waiting lists, health spending includes $30 million for real-time prescription monitoring.

But the Victorian Opposition said the government should be cutting taxes, not increasing them, if it was delivering a $9 billion surplus over the next four years.

Shadow Treasurer Michael O’Brien said the government had announced tax increases in the lead-up to the release of the budget.

“We’re seeing [the] fire services levy going up, we’re seeing a tripling of royalties on coal, we’re seeing new property taxes,” he said.

“We need to make sure that Victorians actually see some benefit out of this budget and that includes reducing cost of living pressures, not making them worse.”

Here are the biggest spends detailed in the 2016 Victorian Budget:

Public transport:

– $2.9 billion over the forward estimates to start work on the Melbourne Metro Rail project and a commitment to fund the entire $10.9 billion project.

– $875 million for 28 high-capacity trains.

– $1.3 billion for regional rail upgrades.

– $875 million for 28 high-capacity trains.

Roads:

– $1.46 billion for the Western Distributor toll road over four years.

Health:

– $335 million to boost elective surgeries to nearly 200,000 a year.

Family violence:

– $572 million over two years to deliver 65 of the Royal Commission into Family Violence recommendations that need immediate action.

Police:

– $596 million for 400 new police and new technology to respond to gang-related crime, gun crime, terrorist threats and family violence.

Education:

– $924 million to build and upgrade schools.

– $92 million for 10 tech schools.

– $10 million for early learning facilities in growth areas.

– $155 million for special education, including $68.5 million to upgrade 20 special schools.

Tax:

– payroll tax threshold lifted from $550,000 to $650,000.

Environment:

– $10 million dedicated to helping public housing tenants cut energy bills.

***Read the full 2016 Victorian budget papers here

– with AAP and ABC

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