About 4200 Victorian public servants will lose their jobs over the next two years to keep the state in the black amid plummeting revenues.
Delivering his second state budget on Tuesday, Treasurer Kim Wells said the public service had to be more efficient and Victorians must live within their means.
Treasury has forecast a $155 million surplus for 2012/13, in line with the government's pre-election promise of minimum $100 million surpluses.
A further 600 public servants will lose their jobs on top of 3600 already announced last December, the first home buyers' bonus will not be renewed and funding for some vocational courses slashed.
The budget includes $15 million towards a business case for the long-awaited East West Link, $350 million for level crossings to be replaced with overpasses at Mitcham and Springvale, and a three per cent cut in WorkCover premiums paid by employers.
While the government hopes most of the extra 600 job cuts can be achieved through voluntary redundancies and not renewing contracts, in limited circumstances workers could be sacked.
Mr Wells did not rule out further cuts or future asset sales and privatisation.
"The financial conditions that are being faced by this state are the worst in a decade," he told reporters.
"To achieve the $155 million surplus we have had to drive further efficiencies.
"It was either that or go into deficit. Going into deficit for this government was not an option."
Community and Public Sector Union Victorian secretary Karen Batt said frontline workers could not be quarantined from job cuts of the magnitude revealed on Tuesday.
"Paying for capital works by cutting your services, your human capital, is the wrong approach," she said.
"It's recycled Kennett and this policy was soundly rejected by the community."
Motoring group RACV public policy general manager Brian Negus welcomed the roads investment but criticised the government for ramping up fines.
There will be a 12.5 per cent rise in fines, with the government expecting to rake in around $662.5 million in total fine revenue in 2012/13.
Motorists are expected to pay almost $306 million in road safety camera fines in 2012/13.
Business gave the budget a tick, with Australian Industry Group Victorian director Tim Piper welcoming the three per cent cut in WorkCover premiums.
However further investment in infrastructure and manufacturing was needed, he said.
Opposition Leader Daniel Andrews said the budget also targeted the most vulnerable, with some of the most savage cutbacks in years.
"To say this is a jobs building budget is just a joke," he told reporters.
From July 1 this year, first-home buyers will no longer receive a $13,000 bonus if they buy a new property in Melbourne worth less than $600,000 and $19,500 if the house is in a regional or rural area.
Mr Andrews said cutting the first home bonus was bad for jobs, regional Victoria and people working in the domestic building industry.
Vocational training courses that are not in high demand will also be slashed.
Australian Education Union Victorian branch secretary Mary Bluett said the cuts would decimate the TAFE sector.
"The decisions of the budget are the most horrendous in the history of TAFE," she told reporters.
"This government has basically abandoned public TAFE and has put in place a system that will see $300 million pulled out of our public TAFEs.
"Many will struggle to survive."
Forum
Pages: 1 
