Treasurer Josh Frydenberg says his government's promise of $4 billion for the previously axed $7 billion East-West rail link in Melbourne will be funded out of the future surpluses flagged in last month's federal budget.
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Mr Frydenberg says the coalition isn't expecting "a cent" from Victoria's Labor state government which has previously rejected the project.
Instead, he says, the remaining monies will be raised by tolls.
"This is money that will flow from the Commonwealth," the treasurer told Sky News on Sunday.
"We would continue to have major surpluses over the years ... if this goes ahead then it will be reduced by $4 billion over the years when the spending takes place."
The controversial rail link between the Eastern Freeway to CityLink will be formally announced when Prime Minister Scott Morrison addresses the Liberal Party's official campaign launch in Melbourne.
"Our investment is about standing by eastern Melburnians who want to get out of the gridlock so they can spend more time with their families, and so they can get to work without wasting hours each week on the road," he told the Sunday Herald Sun.
Labor Leader Bill Shorten is also campaigning in Melbourne ahead of the May 18 election and will pledge $10 billion towards the $50 billion suburban rail tunnel linking every major line in Melbourne, the Sunday Age reported.
Mr Shorten said he would be a partner in Canberra to Victorian Premier Daniel Andrews and Victorians.
"The suburban rail loop will be a game changer for Australia's fastest-growing city. It means faster travel times and more jobs for Victorians," he told the Sunday Age.
Australian Associated Press
