Spending spree on hospitals, schools in Victorian budget

AN election-year spending binge to relieve key headache issues for the Brumby government is expected to be the main feature of today's Victorian budget.

AN election-year spending binge to relieve key headache issues for the Brumby government is expected to be the main feature of today's Victorian budget.

Despite yesterday saying the Victorian budget would be a “modest one”, Treasurer John Lenders will confirm $1 billion spending on hospitals, $287 million to rebuild 100 schools and $6 billion on public transport.

It comes after the government already promised $673 million to put an additional 1966 police on the streets.

The bulk of the health spending is in the regional city of Bendigo for its long-awaited new hospital.

Victorian Premier John Brumby this morning announced $473 million for the project, adding to the $55 million already announced for the hospital in last year's budget papers.

Mr Brumby said the 308 acute bed regional hospital is the biggest health infrastructure announcement in this year's budget and will create 735 jobs during construction.

“We are building the right infrastructure to lock-in a prosperous future for regional Victoria,” he said in a statement.

The budget will offer relief for commuters with an additional 42 train stations staffed across Melbourne as part of a $6 billion public transport plan.

More than 100 schools will be upgraded as the Brumby government delivers the final instalment of its $1.9 billion schools plan promised in the 2006 election.

Mr Lenders said it would be a disciplined budget.

“There will be a lot of things in the budget today and it will continue to be disciplined. It will be one that actually lets us build for the future,” he said this morning.

“We've withstood the global financial crisis better than most. This is the dividends for Victoria now from that.”.

The budget will be handed down at 3pm.

- with AAP