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THE State government has outlined its final budget ahead of the election.

The Budget, unveiled in Melbourne on Tuesday, was labelled an example of "the Coalition government's sound economic management" and features "record spending" on infrastructure.

The government says the document sets out up to $27 billion in job-creating infrastructure projects that will transform Victoria.

An operating surplus of $1.3 billion has been forecast for next financial year, which would grow to $3.3 billion in three  years.

Economic growth is expected to rise, while  net debt is forecast to fall to 4.5 per cent of gross state product by 2017/18.

To meet this, the government plans to reduce payroll tax to 4.85 percent from July, grow employment, and invest heavily in major projects.

Deputy Premier Peter  Ryan said the $220 million Murray Basin Rail Project was the biggest announcement for regional Victoria.

Funds from the sale of Rural Finance to Bendigo Bank would be used to fund the project, with the remaining $240 million to be distributed to regional areas.

"There are various projects under consideration and there will be others forthcoming, I'm sure," Mr Ryan said.

"But rest assured ... all the money is quarantined to regional and rural Victoria.

"Every cracker."

Mr Ryan said there was "a hell of a lot of money" going into country Victoria.

Treasurer Michael O'Brien said the government had managed the economy well.

"We are running a very strong economy," he said.

"And the benefits of that strong economy are filtering through every single part of this state.

"Our economic strategy has always been about maintaining strong state finances so we can help to grow the economy."

Unemployment is forecast to remain steady at 6.35 per cent next financial year and fall by one percentage point by 2017/18.

The economy is tipped to grow by 2.5 per cent next financial year.

Mr O'Brien said 60,000 jobs had been created during the government's tenure and said Victoria had the  lowest regional unemployment rate in the country.