The Victorian Government has committed to funding the entire Melbourne Metro Rail project in this year's state budget.

Key points: $10 billion to be invested in public transport, road projects

$10 billion to be invested in public transport, road projects Payroll tax threshold to be lifted from $550,000 to $650,000 over next four years

Payroll tax threshold to be lifted from $550,000 to $650,000 over next four years Treasurer took swipe at Federal Government for failing to support Victorian projects

Treasurer took swipe at Federal Government for failing to support Victorian projects Opposition says not enough in budget to address population growth

The $11 billion project involves building two nine-kilometre tunnels, and five underground railway stations.

In the state budget, handed down today, there will be $2.86 billion for the project over forward estimates, and the Government has guaranteed the remaining $6.4 billion over future budgets.

The Turnbull Government has refused to provide funding for the rail tunnel, and instead pushed for Victoria to resurrect the dumped East West Link.

The Commonwealth has also refused to provide funding for the Western Distributor road project, meaning there are two major transport projects in this state budget that have received no federal support.

Treasurer Tim Pallas said the state would continue to work with the Federal Government to see if they could be involved, but the Melbourne Metro project was too important to delay.

"We just can't wait, Victorians need to know that we're serious about delivering this project," Mr Pallas said.

"We are deadly serious about delivering this project, and we will deliver it with or without the Federal Government.

"We want to do it with them, this is not about politics. It's about getting stuff done."

Treasurer to PM: 'Stop pretending you're a merchant banker'

Mr Pallas said he wanted to maintain a cordial and productive relationship with the Federal Government, but went on to attack Prime Minister Malcolm Turnbull for offering loans instead of grants.

He said there was a negligible benefit to the state in taking a loan from the Commonwealth rather than borrowing on its own, and took a swipe at the Federal Government for failing to support Victorian projects.

"I'm not sure that the Federal Government know where Victoria is. Certainly their allocations don't seem to give much confidence that they do," Mr Pallas said.

"It seems that the Prime Minister has an obsession with the idea of being a merchant banker.

"So my advice to him would be stop pretending you're a merchant banker and start pretending you're a Prime Minister."

Budget big on transport

The Government said there was more than $10 billion invested in public transport and road projects in the 2016-17 budget.

In addition to funding for the Melbourne Metro, the budget has committed $875 million for 28 high-capacity trains to prepare for its opening.

The Government has also committed $588 million to honour an election promise to extend the South Morang rail line to Mernda, $140 million to upgrade the Hurstbridge line, and $1.3 billion for regional rail.

As well as the $1.46 billion committed to the Western Distributor, the budget includes $437 million for suburban roads, and $260 million for regional road improvements.

The Government will invest $10 billion in public transport and road projects in the 2016-17 budget. ( ABC News: Margaret Burin )

Payroll tax relief for Victorian businesses

The Victorian Government has also committed to lifting the payroll tax threshold from $550,000 to $650,000 over the next four years, in a move it said would benefit 36,000 businesses.

Business groups had been pushing for payroll tax relief, and the Treasurer said the announcement showed the Government had been listening.

In addition to lifting the payroll tax threshold, businesses which take on retrenched trainees or apprentices will not pay payroll tax on those wages.

The budget also includes $53 million to set up Jobs Victoria, to help about 3,500 unemployed Victorians find work.

Not enough done to tackle population growth, Opposition says

The Victorian Opposition said the budget did not do enough to address issues relating to population growth.

Opposition Leader Matthew Guy said the budget was just more of the same.

"This budget does not tackle the greatest issue, the greatest challenge that Victoria faces at the moment and that is population growth," he said.

Opposition Leader Matthew says the budget does not do enough to address population growth. ( ABC News: Stephanie Anderson )

"There is a budget that promises an infrastructure project here, spending over there, and maybe promises into the future, but there is no plan to manage our state's population, and that is what we need."

Mr Guy said the budget lacked a jobs plan and clear economic message, accusing the Government of taxing its way to surplus.

"What we can see from this budget very clearly is that power bills will rise, rents will go up, business confidence will decline, and a lot of that business will head to Sydney," he said.

Shadow treasurer Michael O'Brien said he would be embarrassed to deliver a budget that included tax increases, such as the increases to coal royalties and property taxes for foreign buyers.

"This is a Treasurer who has taxed his way into a surplus," he said.

Mr O'Brien also questioned the Government's commitment to fully fund the Melbourne Metro rail tunnel, given it had not committed all the money over forward estimates.

"The one centrepiece if you like to call it of this whole budget is supposed to be funding of the Melbourne Metro project, but it's not actually funded," he said.