A federal Liberal Party pledge to remove a level crossing in Kooyong falls $100 million short of the required funding, the state government says.

On Sunday Treasurer Josh Frydenberg promised the crossing on Glenferrie Road would be removed, and the railway sent underground at a cost of $260 million.

Treasurer Josh Frydenberg says the Glenferrie Road level crossing is dangerous and congested. Credit:Daniel Pockett

The level crossing sits in the electorate of Higgins, which is next to Mr Frydenberg’s own seat of Kooyong.

Mr Frydenberg said the Glenferrie Road level crossing was dangerous and congested but despite being named by VicRoads as a priority for removal, it was not on the state government’s list.