VICTORIA'S economy has pushed out of the starting blocks after the global financial crisis.

Treasury has positively revised all key forecasts from the May budget, prompting the Government to claim Victoria has weathered the economic storm better than almost any other state or country.

The budget update, tabled in Parliament yesterday, shows the economy is now expected to grow faster than predicted in May, net debt will be lower, employment growth stronger and the surplus bigger.

Premier John Brumby used the figures to taunt the Opposition, which had labelled the budget ''bad news'' for Victorians and had described the May forecasts as ''optimistic in the extreme''.

''Our jobs-building budget was exactly the right budget for the times,'' Mr Brumby told Parliament.