Treasurer Josh Frydenberg has unleashed billions of dollars of spending on Victorian roads and railways, aimed squarely at commuters in Melbourne's sprawling outer suburbs and the state's growing regions.

New spending of $6.2 billion for roads and rail in Victoria, which has emerged as a key battleground in the coming federal election, was unveiled in Tuesday night's budget.

2019 Federal budget has earrmarked the Geelong/Melbourne Vline train line for an upgrade. Justin McManus

Melbourne's health sector was another big winner, with nearly $500 million committed to new hospital and research services.

An estimated 2.9 million Victorians are projected to benefit from the tax cuts that headline the budget.

But transport is where the bulk of the new federal spending in Victoria is directed, with the aim of getting commuters moving in and out of Melbourne's rapidly growing outer suburbs and around the regions.

The state will get $396 million from the Commonwealth's Urban Congestion Fund, which was boosted from $1 billion to $4 billion.

The fund aims to finance road projects that improve safety and get commuter and freight traffic flowing faster in "major urban areas".

The fund includes $500 million for car parking around train stations and other commuter hubs across the nation.

The federal government said on Tuesday night that $3 billion was still available to the Victorian state government if it went ahead and built the controversial East-West Link tunnel.

The budget commits $2 billion for fast rail between Geelong and Melbourne, a project that is dependent on winning state government backing.

The federal government also got on board a better train service between Waurn Ponds and South Geelong, committing $700 million to duplicate the single-track line and get services moving every 10 minutes.

As already flagged, there is $1.1 billion to upgrade 13 arterial roads in Melbourne's northern and south-eastern suburbs and $300 million to seal a network of dirt roads through the bushfire-prone Dandenong Ranges.

Further out of town, $360 million has been committed to finish the Western Highway duplication between Ararat to Stawell and $490 million for the Roads of Strategic Importance fund will pay for a number of smaller projects around the state.

These include $160 million for the Toowoomba to Seymour link, $80 million for the south-west Victoria corridor, $80 million for the Echuca to Robinvale corridor, including the $60 million Swan Hill bridge.

The search for a site for a giant terminal at the southern and northern ends of the $9.3 billion Melbourne to Brisbane inland rail line will soon begin with $44 million committed for business cases for the depots.

Hopes for faster trains will be raised in some of the states' other growing regional cities, such as Shepparton, with spending of $14.5 million for a National Faster Rail Agency to "identify and support the development of fast rail connections between capital cities and key regional centres".

The nearly half-a-billion dollars in new health spending for Victoria has a high-tech focus, with $80 million committed to establish a Centre of Excellence in Cellular Immunotherapy and $30 million for the high-tech Aikenhead research centre at St Vincent's Hospital.

The Peter McCallum Cancer Centre is getting an extra $80 million to povide CAR-T cell therapy and there will be $40 million for a new paediatric emergency department to be built in Victoria.