In an election year budget, the Napthine government has picked up on the public mood and gone all out on transport spending, pledging that up to $24 billion will be invested in major new road and rail projects that will transform Melbourne.

The showpiece of this year's budget is the "Melbourne Rail Link", a 7.5 kilometre tunnel from South Yarra to Southern Cross Station that the government says will deliver a 30 per cent boost to rail capacity, carrying 35,000 extra passengers per hour on 30 extra train services.

With $830 million committed over the next four years, starting with a modest $40 million in this budget, the Melbourne Rail Link is scheduled to open in 2023, Treasurer Michael O'Brien said.

"Melbourne Rail Link will be the biggest expansion of the rail network since Henry Bolte created the City Loop," Mr O'Brien said.

As predicted, the Napthine government has torn up the old plans for Melbourne Metro, which had the tunnel running beneath Swanston Street and included five new stations in the CBD, Parkville and North Melbourne. Melbourne Metro, proposed under Labor, had been judged as "ready to proceed" by federal advisory body Infrastructure Australia.