WORK on a rail tunnel between Southern Cross Station and South Yarra will begin in 2016, the State Government will announce.

The announcement of the tunnel, which will include stations at Fishermans Bend and the Domain, will be the centrepiece of a big-spending election year budget.

FOLLOW OUR LIVE ROLLING COVERAGE OF THE STATE BUDGET FROM 3PM.

The budget will include $7.5 billion of infrastructure spending in the next financial year.

Premier Denis Napthine told the Herald Sun he estimates the Government’s transport infrastructure expenditure would generate 25,000 jobs over the life of the projects.

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Another 1600 jobs are expected to be created by education spending announcements in this budget alone.

media_camera A look at what you can expect in the Budget.

Dr Napthine said the budget would deliver game-changing infrastructure and be a bonanza for transport infrastructure jobs.

“This is about creating high value jobs today by delivering projects that will benefit Victorians for generations,” he said.

“This is easily the largest investment in infrastructure in Victoria’s history and more than double Labor’s average infrastructure investment of $3 billion per year.”

Tuesday’s budget will contain funding details for projects already announced, including stage two of the East West Link and the airport rail link, which are expected to create 3200 and 1700 jobs respectively.

Days ago Deputy Premier Peter Ryan announced the Government would spend $220 million converting the Mildura Geelong railway line to standard gauge, a project which the Government said would create 300 jobs.

Another 250 jobs are expected to be created by the duplication of the Princes Highway between Winchelsea and Colac, funding for which will be in the budget.

The route for the Metro Rail Capacity Project, formerly called Melbourne Metro, has been changed from earlier plans that would have seen it begin in Footscray before snaking through Parkville and down through the City to South Yarra.

The new route will avoid the necessity of digging up Swanston Street.