VFF says debt, inadequate road funding, point to 'grim' state budget

She singled out concerns over road funding and biosecurity as the main issues facing the sector.

"It (the budget) is seriously grim," Ms Germano said.

"Farmers know that this fiscal environment is not going to allow for 'cute' programs, which is why we need the basics every other Victorian gets - which is infrastructure spending in regional Victoria.

"We have missed out for decades."

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She said the state was in a "giant black hole" of debt, and using new taxes to pay for it was neither fair or sustainable.

"Despite being 15 per cent of the Victorian economy we have seen a measly 5pc spent on us again," Ms Germano said.

"Once again it's a disproportionate amount of spending between regional Victoria and metropolitan Melbourne," Ms Germano said.

"For all the talk about paying down debt, the Treasurer failed to mention it's going to continue to skyrocket over the next five years - this is fiscal mismanagement over the past decade and again during COVID.

"To say this is all COVID'S fault is unreasonable."

She said it was unhelpful to budget for road funding over 10 years.

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"The government hasn't come clean, it looks like it's only $50 million for the whole state, for road funding next year," she said.

The five Victorian shires most heavily affected by the floods each needed hundreds of millions of dollars for road repairs.

"There is no certainty for road funding - and that's to do anything to improve, or repair, the roads let alone to do any betterment necessary, after years of neglect."

The budget papers recorded many major road projects, and some freight rail programs, were now "to be confirmed" pending the federal government's 90-day national infrastructure review.

The Department of Transport and Planning also reported it expected to fall 30 per cent short of its 2022-23 target for resurfacing and rehabilitating roads in regional Victoria.

"We have asset managers out in various parts of regional Victoria saying it is impossible to get things approved and get the go-ahead and they lose contractors in the mean time," Ms Germano said.

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Rural Councils Victoria chair Councillor Mary-Ann Brown said the state government appeared to have managed expectations with reports of a large deficit and budget cuts.

"We note that they brought forward the closure of the native timber industry and RCV calls for urgent government support for the affected communities, workers and their families who are feeling devastated," Cr Brown said.

"RCV calls on the government to work in collaboration with the affected workers, communities and councils to ensure these rural areas are able to create new jobs and economically transition."

She said RCV was also concerned much of the investment in the crumbling Victorian rural roads network came with the caveat that it 'may be subject to the Commonwealth Infrastructure Investment Program review'.

"Rural communities need roads and infrastructure that meets their needs and supports them to grow and thrive," she said.

"It is disappointing that the expected outcome for the road maintenance target in 2022-2023 is more than 29 per cent lower than anticipated."

"We note the budget papers reasoning that the reduction from 12,140,000 square metres of repairs to just 8,570,000 square metres is 'due to increased costs arising from market price escalation'.

"Rural councils are acutely aware of the cost pressures facing road and other infrastructure maintenance and the devastating effects of natural disasters and heavy rainfall.

"Now the government is experiencing what many rural councils have been grappling with for years we hope that in future there is further funding to address these issues so rural communities, tourists and hauliers can have safe and well-maintained roads."

Ms Germano said while it was nice to see some money had been carved out for biosecurity, Agriculture Victoria was facing more cuts.

Ms Germano said it appeared there was a slight increase in funds allocated for biosecurity.

Budget papers show $13.8 million would be set aside in 2023-24 and $3.6 million in 2024-25.

That included grant programs for producers, scholarships for hospitality workers, a farm safety and wellbeing program and funding for pests and weed management.

But Ms Germano also raised concerns about planned staff cuts; between 3000-4000 roles are marked to go, across the public service.

"AgVic has already suffered staff cuts a number of times," she said.

Treasurer Tim Pallas told a pre-budget briefing job cuts would occur in back-office activities, communications and marketing and policy servicing to governments and ministers.

"The pace of government has been absolutely frantic, over the last few years - a lot of public servants have done an exceptional job, but the speed of government needs to return to normal" he said.

"We need to get back from a post-crisis environment to one where we are dealing with the business of government in a normal and structured way."

He said he anticipated the decisions around job losses would be made by department secretaries, in consultation with their departments.

"We expect 3-4000 public servants to be departing, whether it's by attrition or other means, including redundancy packages, but there are abut 2000 in the general public sector to be employed."

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A Community and Public Sector Union spokesperson said representatives would meet with the Department of Premier and Cabinet Secretary next week.

There were no details as to what jobs were being targeted, apart from the "usual language of corporate and back office roles," he said.