Budget cash splashed on roads

It was a steady-as-you-go economic program, very much in line with the Premier's approach since taking office late last year.

Critics would say it lacked the flourishes and panache new governments apply to their first economic programs.

Water projects totalling almost $282 million, more than $58 million in state-funded road redevelopment, $33 million towards school reconstructions and kindergarten funding, and $8.3 million in Geelong Hospital project funding topped Treasurer Kim Wells' spending in the region.

The Budget release coincided with the Reserve Bank's announcement that the official interest rate would be kept on hold at 4.75 per cent, for the sixth successive month.

Although the bank's decision had been widely anticipated, many financial commentators believe rates will rise by August, if not earlier.

House prices are also falling and yesterday's RBA statement noted a slowing of jobs growth in the year ahead.

Just looking at it very briefly it seems Geelong scores very highly, it looks very positive for the city," he said. "The devil is always in the detail but on the surface it looks very promising."

The huge amount of spending on Geelong came as Mr Wells revealed a budget that slashed spending across Victoria but still featured $1.7 billion worth of state-wide infrastructure investment.

In delivering his first budget, Mr Wells warned Victoria faced a difficult economic period and predicted the state's net debt would again climb despite measures to curb spending.

And next week, the Federal Government's anticipated belt-tightening Budget will be handed down.

The indications are that it will be extremely tough, particularly on households.

Added to this is general fear of a wages breakout. It's already on the cards in Victoria with demands from police and teachers.

Budget highlights include:

A $1.2 BILLION package to address cost of living issues.

HALVING the cost of stamp duty for first home buyers, pensioners and farmers over the next four years, including a 20 per cent cut this financial year.

A $100 MILLION school maintenance fund.

ROADS funding of $601 million.

$500 MILLION over four years for a regional growth fund.

A $5 MILLION investment to establish a new independent anti-corruption commission.

$602 MILLION committed to fund the training of 1700 police recruits and 940 Victoria Police protective services officers.