Ms Allan was responding to claims by Nationals member for Northern Victoria Region Damian Drum that the project would no longer go ahead as the funding had not been allocated in Tuesday's budget.

"The Andrews Labor government has already made it crystal clear that funding is there," she said.

"We are waiting for the council to finalise its process."

Mr Drum said he had trawled through the budget papers looking for the funding and said it "quite simply isn't there".

"It means there is absolutely no Labor money for the pool," he said.

However Ms Allan said the money was included in the budget as part of the $100 million Community Sports Infrastructure Fund, rather than being listed as an individual item as it wasn't a new project.

"We delivered 100 per cent of our election commitments to Bendigo in our very first budget," she said.

The budget papers earmark $25 million per year for the fund for the next four years.

City of Greater Bendigo mayor Peter Cox confirmed the budget reaffirmed funding for the Greater Bendigo Indoor Aquatic Leisure Centre and Bendigo Stadium expansion.

He said both were priorities for the council.

"The funding in the state budget means that work on both these important projects can commence during the next 12 months," Cr Cox said.