Treasurer to reveal hospital funds

Domain interchange and Alexander Pde/Eastern Freeway Picture: Norm Oorloff Source: Herald Sun

Treasurer Michael O'Brien will release the State Budget. Picture: Jake Nowakowski Source: Herald Sun

• Instant Budget news on your PC and mobile from 3pm
• Download your special Budget iPad edition from 7pm
• Quick guide to what the Budget means for you, out today

HOSPITALS and transport infrastructure will get a cash injection in today's State Budget as the Coalition also unveils a strong surplus.

Treasurer Michael O'Brien's first Budget will show a $225 million operating surplus for the next financial year, growing to more than $2.5 billion by 2016-17.

The healthcare and transport sectors will get significant investment, but the Government will keep a tight check on spending as it resists slipping into the red.

Mr O'Brien said the Government had put aside money for projects that Victorians wanted and needed.

"This is a really strong Budget in really difficult times, and I think it gets the balance right," he said.

"I think it delivers the investment that Victorians are looking for but it does it in a way that we can afford."

The Budget, which the Coalition has themed "Building for Growth", will be tabled at 3pm today.

Mr O'Brien said there would be significant spending "in the hospitals area" but was tight-lipped on detail.

"I think this will be a very strong Budget when it comes to the healthcare industry," he said. Spending will include $50 million for a community hospital in Geelong.

The Coalition would have been able to boast an $818 million surplus for 2013-14 under previous years' accounting rules.

A change to the way the Government must report forecast superannuation obligations means that the final net operating balance is $225 million.

"It doesn't mean there's any more or less money in the Budget, it's purely an accounting treatment," Mr O'Brien said.

Over four years, government expenditure is forecast to grow by an average of 2.7 per cent a year.

Revenue growth in that period will be an average of 4.1 per cent a year.

Mr O'Brien said keeping a lid on spending was why the Government was able to forecast strong surpluses into the future.

The Government has already announced a $283 million cash splash on recruiting new doctors and nurses, as well as $170 million for roads.

There will be a $350 million spend on removing level crossings, and $100 million for Frankston line upgrades.

matthew.johnston@news.com.au

View the original article here