Free TAFE courses for tens of thousands of students, tax relief for regional businesses and a record investment in mental health services have headlined the Victorian Government's election-year budget.

With most of Labor's billions for schools, hospitals and infrastructure already announced ahead of Tim Pallas's budget, there were few surprises waiting, and the pitch from the Treasurer is designed with suburban and regional voters in mind.

The Government will make 30 "high-priority" TAFE courses free from next year, under a $172-million plan to get more Victorians trained.

Twenty of the non-apprenticeship courses have been identified, and another 10 courses will be announced in future.

Eighteen "Apprenticeship Pathway" courses will also be offered for free.

The budget also includes $303.5 million for new classes and places.

"We need to shed ourselves of this view that there is only one path to excellence in the workforce, an academic one," Mr Pallas said.

"We have to recognise that there are people out there who have skills and aptitudes who should be appropriately rewarded, and the Government needs to play a substantial part in skilling those capacities."

'A fantastic opportunity'

Victorian Council of Social Services chief executive Emma King said offering free TAFE courses was "an absolute winner".

"We currently have 10,000 students who drop out of school every single year," she said.

"So we've got so many students who will be able to undertake TAFE courses.

"These are those who are previously lost to our system in many cases, and we are giving so many of our young students, as well as our older people, a really fantastic opportunity to train in a way that they simply haven't had for years."

The Government says its investment in infrastructure construction, disability services and family violence prevention has created strong demand for workers with the skills taught in the selected TAFE courses.

Treasurer Tim Pallas's fourth budget outlines a surplus of $1.4 billion and a massive infrastructure spend, while reducing state debt to 4.6 per cent.

It outlines more than $13 billion in infrastructure spending, including $4.2 billion for health, $4.3 billion for regional Victoria and $1.25 billion for schools.

"This is a Labor budget that invests in the projects that our state needs and the people we need to deliver them," Mr Pallas said.

The free TAFE courses Non-apprenticeship courses Apprenticeship pathway courses Accounting, Certificate IV/Diploma/Advanced Diploma Automotive Air Conditioning Technology, Certificate II Ageing Support, Certificate IV Automotive Body Repair Technology, Certificate II Agriculture, Certificate II/III/IV Automotive Servicing Technology, Certificate II Agriculture (Dairy Production), Certificate III Automotive Vocational Preparation, Certificate II Allied Health Assistance, Certificate III/IV Construction Pathways, Certificate II Building and Construction (Building), Certificate IV/Diploma Electrotechnology (Career start), Certificate II Civil Construction, Certificate III Electrotechnology (Pre-vocational), Certificate II Community Services, Certificate III/IV/Diploma Engineering Pathways, Certificate II Concreting, Certificate III Engineering Studies, Certificate II Construction Waterproofing, Certificate III Furniture Making, Certificate II Dental Assisting, Certificate II/IV Glass and Glazing, Certificate II Disability, Certificate IV Horticulture, Certificate II Education Support, Certificate III/IV Meat Processing (Food services), Certificate II Engineering, Certificate IV Plumbing (Pre-apprenticeship), Certificate II Horticulture, Certificate III Printing and Graphic Arts (General), Certificate II Hospitality, Certificate III Retail Baking Assistance, Certificate II Individual Support, Certificate III Salon Assistant, Certificate II Mental Health, Certificate IV Signage and Graphics, Certificate II Diploma of Nursing Plumbing and Services, Certificate IV

Hospital crisis hubs

There will be dozens more mental health beds in Victoria's hospitals. ( ABC News: Danielle Bonica )

The budget outlines a $705-million package for mental health and to tackle the scourge of methamphetamine ice. That includes $232 million for 89 additional mental health beds.

It also spells out $101 million for six emergency department crisis hubs, including five in Melbourne, to respond to patients with drug, alcohol and mental health issues.

Mr Pallas said spending on mental health recognised the impact it had on many Victorians' lives.

"Putting in place these arrangements will, in our view, make a very substantial difference," he said.

"Being able to provide more mental health beds, being able to provide access to appropriate counsellors and mental health and support workers I think will be a key part of the strategy."

Payroll tax relief

While spending big on infrastructure, the Andrews Government appears to be listening to business groups, announcing it will lift the payroll tax-free threshold to $650,000.

Who said what: There was much enthusiasm for free TAFE courses and investment in schools for vocational pathways. The Victorian Council of Social Services said thousands of students drop out each year and the change would help. The Master Builders Association of Victoria, and Melbourne City Mission were also in support.

There was and investment in schools for vocational pathways. The Victorian Council of Social Services said and the change would help. The Master Builders Association of Victoria, and Melbourne City Mission were also in support. Luke Hilakari from the Victorian Trades Hall Council labelled the budget "great for Victorian workers" .

Luke Hilakari from the Victorian Trades Hall Council labelled the budget . The Police Association Victoria said an investment in mental health services and more funding for the court system would help the state's police force .

The Police Association Victoria said an investment in mental health services and more funding for the court system would . The Salvation Army said no new money was going to help people waiting for public housing and the Government needs a longer-term plan.

The Salvation Army said and the Government needs a longer-term plan. Environment Victoria said it was a "disappointing budget", with more money spent on the AFL than on renewable energy .

Environment Victoria said it was a "disappointing budget", with . Public transport investment is still trailing behind that for roads and a change is needed to ease congestion, the Public Transport Users Association said.

In regional areas, payroll tax will be slashed to 2.425 per cent, which is half the metropolitan rate.

Ahead of Tuesday's budget, Treasurer Tim Pallas pledged there would be no new taxes and charges in the budget.

The budget papers spell out a strong financial position, with average surpluses of $2.5 billion a year over the next four years built on population growth and continued strength in the property market.

Population is expected to grow by 2.2 per cent in 2018-19 before levelling out to 2 per cent from 2020-21.

The Government boasts that it has created 333,900 jobs since the Andrews Government came to office in November 2014.

Public service costing more

There has also been growth in the public service workforce, something the Opposition is likely to seize on, with public sector wages up more than 10 per cent.

Mr Pallas defended the increase in employee spending.

"This is about providing services to a growing population," he said.

"In the year to June 2017 we've seen the Government employ a significant number of frontline staff including something like 3,000 healthcare workers, 1,500 teachers and staff, a thousand police and emergency services staff.

"We've employed a lot of people … it would be a disservice to the community if we didn't."

The Government said extra police had contributed to public service costs. ( ABC News: Stephanie Anderson )

Environment Victoria chief executive Mark Wakeham said the Government had "dropped the ball" on protecting the environment.

"It's a really disappointing budget," he said.

"There is no significant new funding to tackle climate change, there is no significant support [for] renewable energy and lower energy prices.

"The Andrews Government today has gifted the AFL more money to redevelop Etihad Stadium and the MCG than it is spending on new environmental programs and that's wrong-headed."

Victoria's Opposition leader Matthew Guy said there was not enough help for working families in the budget.

"Compared to four years ago, cost of living is up, taxes are up, debt is up, the crime rate is up, and there is nothing tangible in this budget to help families or households get ahead," he said.