What the Victorian budget contains for agriculture

Of that, $46.4 million is earmarked for projects such as improved traceability systems, the Fruit Fly Strategy, a further $5.8 million to support the Rural Financial Counselling Service and nearly $20m to "fast-track" the agricultural sector's response to climate change.

The budget confirms the $10 million for the Morwell Food Manufacturing Precinct, forecast to support 1700 manufacturing jobs, when up and running and $3.6m for the Mode Shift Incentive Scheme.

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A further $11.7m, announced before the budget, goes towards the traceability information hub, to develop new systems to prove the quality and origin of Victorian produce.

It also goes towards campaigns to promote paddock-to-plate operations.

In the south-west, the budget invests $17.4m to economic diversification for Portland and the Glenelg Shire.

That includes funding for local freight road upgrades.

Regional areas will also get a slice of the $3.8b set aside for reforms to the state's mental health system.

They will benefit from $700m in spending on services.

In his budget address to parliament, Treasurer Tim Pallas said the economy was recovering, not tentatively or gradually, but "in an optimistic rush, that shows a heartfelt confidence in the future.

"We're on track to meet our goal to get an extra 400,000 Victorians back in work by 2025 - in fact we've already beaten our own interim goal of 200,000 jobs, nearly a year early." Mr Pallas said.

The budget commits $3.8bn over the next four years to mental health spending and more than $10bn over the next four years on infrastructure including schools and hospitals.

Gross state product expected to increase 6.5 per cent next financial year.

The government also laid out its roadmap for increased stamp duty and land tax.

A new windfall gains land tax will bring in up to 50pc of the profits from developers, who gain from government rezoning decisions.

Mr Pallas said Victoria's economic growth had surged, with State Final Demand growing by 6.8 per cent in the December quarter, more than double the national average.

Gross state product is expected to increase by 6.5pc in 2021-22.

"Thats well above Australia's forecast 4.25 pc GDP growth," Mr Pallas said.

The government has forecast an operating deficit of $11.6 billion in 2021-22, reducing to $2b in four years.

Speaking to the media, Mr Pallas said he was focussing on getting to a surplus.

"Then, and only then, in my view do you get to a position where you can manage the debt profile of the state," Mr Pallas said.

"Our priority is the well-being and welfare of all Victorians.

"The choices we make reflect our values as a government - our values are that we need to grow jobs and care for those in the community, who need support."

He said there was no substitute for ambition, when growing the economy.

"As a government, we are going to make that investment and continue that investment," he said.

"I would be the first to recognise as a goverment the more we put into the market the greater heat we put into it."

But he said governments across the eastern seaboard were making massive infrastructure investments.

"The government will continue to attend to what are the underlying causes associated with the escalation in price and risk," he said.

Multi-billion projects brought with them a substantial attendant risk to the existence of many companies.

"As a government we need to have a genuine enagement with these companies, as to how risk is borne, and how government best manages its expectations - understanding the task before we commit to projects is a vital first step," he said.

Challenges would continue, as the government continued to invest more and more in the capital the state needed.

"To do anything less than that, I think, would compromise the future," Mr Pallas said.

The government will spend $3.5m in the coming financial year, $4.1m the following year and $4m in 2023-4 on what it says is its "transforming traceability" program.

"Agricultural traceability systems will be strengthened to enhance Victoria's reputation for high-quality food and fibre products, driving growth in both local and export markets," the budget papers say.

"This will be achieved by implementing a traceability and product integrity action plan, which iwll provide increased information on traceability systems and improve biosecurity risk management.

"New traceability technologies will be trialled, building on successful Agriculture Victoria technology trials."

Funding of $20m is set aside, over four years, to deliver the government's commitment to position Victoria as a leader in low-emissions agriculture.

That includes supporting measures to accelerate research, innovation and deployment of methane inhibiting feed additives and promote on-farm emissions reduction and adaptation.

The Victorian Agriculture and Climate Change Statement will also be developed, which will be co-designed by industry and regional leaders to create "a shared long-term vision about the role of Victoria's agriculture sector in a net zero emissions economy."

In what is claimed to be the largest funding package ever from the government, more than $517m will go towards reducing bushfire risks, including $15.6m to increase work to remove long grasses and other highly flammable undergrowth.

More than $133m will go to upgrading the digital radio service, for Forest Fire Management Victoria staff and other emergency service personnel.

The government has earmarked $138.8m replace CFA radio equipment with modern, digital technology, to strengthen the brigade's emergency response, while keeping volunteers safe.

A further $22.5m will use the expertise of Aboriginal cultural burning, in Victoria's land management contributing to bushfire preparation in local communities.

CFA stations at Irymple, Serpentine and Metcalfe will be replaced, while Doreen will be upgraded.

Landcare, Trust for Nature and the Port Phillip Bay fund will share in $75.3m funding to care for wildlife, plant trees and tackle weeds and pests.

The budget sets aside $2.5m, over three years, for what is described as protecting the reliability of water entitlements and maximising resources for regional businesses and communities.

The funding has been provided to support water compliance, activities that will maintain community confidence in the water entitlement framework, prevent water theft and address emerging risks to water availablility.

It has also earmarked $3.6m for resilient water markets, regional communities and infrastructure, next financial year, with $2.6m for 2022-23, with $2.2m in 2023-24.

That money will go towards community engagement and capacity building to support irrigators and traditional owners.

It includes grants for infrastructure projects to enable farms to modernise and optimise water efficiency.

It will be funded from the environmental Contribution Levy

The government has set aside $1.3m, over the next four years, for pest and weed management.

Some of the funding will go to regional, rural and interface councils, with responsibility for maintaining rural roads to prevent the establishment and spread of weeds and pest.

"This will reduce the risk of weed infestations on rural roadsides, helping prevent teh spread of fire along road reserves and onto adjacent public land, and flow-on benefits for weed and pest management on farming land," the budget papers say.

The budget contains funding of $249m to continue upgrading country roads - on top of the more than 5,500 kilometres of improvements the government says it's already delivered across regional Victoria since 2018.

Total spending on road maintenance in the 2021-22 financial year ($754.9m) remains above the three year average ($745.25m).

That was before a one-off stimulus boost in the 2020-2021 financial year ($898.84 million).

There'll be $5.2m set aside, in the coming financial year, for Murray River bridge crossing upgrades, with $5.9m and $4.8, over the following two years.

The work will address road asset deterioration and reduce road user exposure to safety hazards.

A further $6.7m will go towards regional road upgrades, in the coming financial year and $2.2m will be set aside, over three years, for "a more productive road network for freight."

That will include the development of a new automated road assessment and permit system, to allow heavy vehicle access to the road network in a faster and more efficient way."

"Pre-approved heavy vehicle types and mapping of key routes will be expanded to support safer and more reliable heavy freight movements," the budget papers state.

Funding is provided for a program of priority bridge upgrades and renewal works.

Regional road upgrades include the Western Freeway and Learmonth Road intersection, corridor improvements on the Surf Coast Highway and Bellarine Link Stage 1.

Funding of $1.4m has also been set aside for delivering improvements in road asset management systems, integration and alignment across 11 rural shire councils.

It's intended to promote consistency in policy setting and road asset management practices, over the medium and long term, producing ongoing efficiencies in road maintenance.