A further $15 million will be put towards upgrades to the Calder Highway in the federal budget.
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The government has released details of its spending plans for Victoria ahead of Tuesday's night's budget.
Work on the Calder, including new overtaking lanes between Marong and Bridgewater, have been announced previously.
But Liberal Senator Sarah Henderson said the budget would provide a further $15 million for the project.
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"The Morrison Government's $15 million of additional funding increases our total investment in this road corridor to $75 million which is a great win for regional Victoria," she said.
"The new overtaking lanes on the Calder Highway will deliver a major road safety boost for road users including the people of Bendigo."
Construction is expected to start by the middle of this year.
The government plans to spend more than $10 billion on infrastructure. The Minister for Urban Infrastructure Paul Fletcher said the infrastructure investment will secure Australia's economic recovery.
"This government is committed to delivering nation-building infrastructure projects, busting urban congestion, meeting our national freight challenge and getting Australians home sooner and safer," Minister Fletcher said.
Federal Labor also wants to invest in roads and has been calling for extra infrastructure spending to kick-start the economy after Covid.
The opposition also wants to embark on new social housing development plans and invest in the energy grid to power the manufacturing sector with cleaner energy.
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