There is also an unexpected announcement about the state government spending $120 million to take full ownership of the Bendigo GovHub.

Treasurer Tim Pallas handed down the budget in Melbourne on Thursday afternoon.

The $95 million funding allocation for the Maryborough upgrade fulfils a pledge made by Premier Daniel Andrews ahead of the last state election in 2018.

There are is also a $5.5 million upgrade planned for the California Gully Primary School, along with works at Huntly Primary School, Rushworth P-12 College and Gisborne Secondary College.

The government's also announced the Victorian Academy of Teaching and Leadership will include seven regional learning centres, including in Bendigo in Loddon Campaspe region.

Other news:

There is funding to "kickstart planning" for a new ambulance station in Marong, replacement CFA stations for Serpentine and Metcalf, and Black Forest Drive at Woodend will get a safety upgrade.

Bendigo's Youth Prevention and Recovery Care facility will be upgraded.

This Budget also delivers on recently identified Regional Partnerships priorities, including the Healthy Heart of Victoria initiative and funding for Live 4 Life and Be Well in the Ranges.

Funding has been confirmed for the Emporium Creative Hub and continued public wifi access in central Bendigo.

Be. Bendigo chief executive Dennis Bice welcomed confirmation funding for the Growing Regional Opportunities for Work program would continue for at least a further three years, with $3 million committed to existing providers and $2 million to leadership programs.

He said investing in strong leadership skills, and engaging and employing people with disabilities were essential, as was encouraging people to buy and support local.

He welcomed funding for skills programs, for mental health initiatives and for family violence and social housing initiatives.

"Economic growth and employment are absolutely necessary."

He said some aspects of the budget were not as strong as he would have liked, but added work around the state's ongoing recovery was important to the economy.

"Upskilling people and creating job opportunities is critical, and funding around digital literacy, and for TAFE programs is welcome."

More news:

Other statewide highlights include:

$3.8 billion to rebuild the mental health system on the back of the royal commission into the sector

$3.7 billion into hospital services, including more emergency staff and specialised therapies

$1.3 billion for the public health response to COVID-19

$50 million to support establishing Victoria's mRNA vaccine manufacturing capabilities

$492 million to build 13 brand new schools and additional stages of another three schools

$340 million to upgrade 52 schools

$148 million for a Victorian Academy of Teaching and Leadership, located in the Melbourne CBD, Bairnsdale, Ballarat, Bendigo, Geelong, Mildura, Moe and Shepparton

$167 million towards the continued three-year-old kinder roll-out

$986 million towards the design, construction and maintenance of 25 new X'Trapolis 2.0 trains, predominantly in Victoria, and to upgrade the Craigieburn train maintenance facility

$385.8 million for road safety and preventing road deaths

$46 million for a zero-emissions vehicle purchase subsidy, dubbed Australia's first

$74.3 million to improve frequency and routes of the regional and suburban bus network

$517 million towards reducing bushfire risk

$138.8 million over seven years to upgrade CFA radio equipment to digital

$39.2 million for upgrades to VicEmergency and other information systems, improving cross-border arrangements and the Australian fire danger rating system

$87.92 million to implement recommendations from the royal commission into the management of police informants

Elsewhere in the budget for Indigenous Affairs there is $58 million towards the Yoo-rrook Justice Commission which will address historical and ongoing wrongs, plus:

$32 million to continue the transfer of Aboriginal child protection and out-of-home care services to Aboriginal community-controlled organisations

$17 million to advance treaty and self-determination

$116 million to support mental health and wellbeing

$33.1 million for programs to prevent Aboriginal deaths in custody

Victoria's budget rests on the assumption the state won't have another prolonged coronavirus lockdown.

The seventh budget by Treasurer Tim Pallas, unveiled on Thursday, forecasts any further outbreaks of COVID-19 in Australia will be "contained and only result in localised, short-term restrictions".

Following the lead of the federal government, the Victorian treasury anticipates international borders won't reopen until 2022, with the student, tourist and migrant numbers to pick up in the middle of the year as travel bubbles are created with other countries.

It is six months later than treasury initially forecast and is blamed on the delay in the rollout of COVID-19 vaccines globally.

To offset some of the damage, the government will spend $55 million on a Visit Victoria marketing campaign to lure the rest of Australia and $42.9 million to support conventions and business events in the state.

More than $100 million will be spent to rejuvenate Melbourne's CBD and another $100 million will go towards cultural events and extending outdoor dining.

About $7.4 million will provide for a new dining voucher scheme to support the city's hospitality industry.

The budget allocates $1.3 billion to continue the state's fight against COVID-19, as well as $328.9 million to vaccinate Victorians who fall under phase 1A and 1B of the rollout.

However, no funding has been allocated to the vaccine rollout beyond June this year.

"There continues to be consistent problems around clarity of supply of the vaccine, that essentially is an issue that gives us difficulty in being able to have great certainty about when this process will be complete," Mr Pallas told reporters.

About $50 million will be spent on establishing local manufacturing of mRNA vaccines, such as Pfizer and Moderna.

But the treasurer has warned the pandemic "isn't over" for all Victorians.

"The truth is that just as some of us had a tougher pandemic than others, some of us are having a tougher recovery," he told parliament.

To begin the repair job on Victoria's COVID-battered finances, Mr Pallas has announced $2.7 billion in new taxes on the state's richest property owners.

Measures include a windfall gains tax on property developers, removing land concession on men-only exclusive clubs, increased land tax and increased stamp duty on properties above $2 million.

Mr Pallas also confirmed the guaranteed annual increase of public sector jobs will be cut from 3 per cent to 2 per cent from 2022.

- with AAP

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