More than $47 million was announced to establish a government hub in Ballarat to house public service functions, attracting hundreds of jobs from Melbourne.

The plan could also be rolled out in Bendigo in future years.

The state budget papers for 2017-18 show $1 million will be provided to Bendigo in 2017-18 to develop a proposal to “consolidate Victorians public service and council functions and agencies into a new customer service centre”.

The City of Greater Bendigo raised the proposal as part of a senate inquiry into the relocation of government entities earlier this year.

Minister for regional development Jaala Pulford said the specific details – including which departments would relocate – was yet to be determined.

“I’m not in a position to provide further details about which government agencies will be consolidated,” she said.

Ms Pulford said the government would work with departments and staff to determine the best approach to the relocation.

The LaTrobe Valley will also receive a “GovHub”, with 150 jobs promised, in an effort to stem job losses from the shutdown of Hazlewood power station.

Bendigo will be the next site to be investigated after Ballarat and LaTrobe.