Acting Premier James Merlino slams ‘deeply disappointing’ federal budget

Frydenberg has rejected claims Victoria was “dudded” in the budget as Acting Premier James Merlino took aim at the Treasurer saying he “may come from Victoria but he’s not for Victoria”.

Acting Premier James Merlino has lashed his federal counterparts, accusing them of failing to give Victoria a fair share in the federal budget.

But Josh Frydenberg rejected claims his home state had been dudded on infrastructure funding and GST payments.

The state government also revealed it had been lobbying for a massive $10bn injection in the $34.5bn first stage of its Suburban Rail Loop project — a request the Coalition ignored.

Mr Merlino said it was “deeply disappointing” that the state had been short-changed but he was not surprised.

“Victoria has been dudded,” he said.

“The Treasurer may come from Victoria but he’s not for Victoria and once again we’re seeing that in this year’s budget.”

Mr Merlino dismissed claims the state received less infrastructure funding because the Andrews government and Morrison government failed to agree on big projects.

“The federal government has refused to engage on SRL,” he said.

“We’ll keep working with them … but we see it budget after budget from this federal government.”

Assistant Treasurer Danny Pearson on Wednesday revealed the state was seeking $10bn for the project — the same commitment made by Bill Shorten when he was the Labor leader during the 2019 election campaign.

Federal Labor are yet to recommit to the project but the Herald Sun this month revealed Anthony Albanese was expected to make an announcement within weeks.

Mr Pearson said just 6 per cent of new infrastructure funding was given to Victoria — despite the state boasting a quarter of the nation’s population.

He said $6.6bn had been collected in GST from Victorians since 2014 and the state was not getting a fair share of it back.

“Anyone would think that Alan Bond came up with a deal like this, it is that bad for Victorians,” Mr Pearson said.

The federal Treasurer staunchly rejected claims Victoria was dudded on the GST, despite the state’s share dropping from 92 cents in the dollar to 86 cents.

Mr Frydenberg also said that over the next decade, Victoria would receive 26 per cent of infrastructure commitments in line with its population share.

“These include the Melbourne Airport rail link, Geelong fast rail and now intermodal terminals,” he said.

Danny Pearson has accused Josh Frydenberg of needing to use a calculator. Picture: David Crosling

Federal opposition infrastructure spokeswoman, Catherine King said only 6.1 per cent of the $3.3bn in infrastructure funding promised in this year’s budget would be delivered in next four years.

“Victoria needs a federal government that will actually work with our state to deliver the projects needed,” she said.

The state also missed out on securing funding from the $7.1bn regional development fund.

Regional Cities Victoria said the lack of investment was “disappointing” after an incredibly challenging few years.