Our 2026 State Budget response

Outer Melbourne left wanting as Victorian Budget falls short on investment

MEDIA RELEASE – 5 May 2026

The Victorian Government has delivered an underwhelming Budget of modest spending at a time when Outer Melbourne communities are calling for a stronger acceleration of investment, the Outer Melbourne Councils (OMC) alliance said.

The 2026 Victorian Budget contains welcome investments in bus services, new community hospitals in Cranbourne, Pakenham and Craigieburn, and funding to progress investigations and planning for the Melton rail line. A small allocation of $1.7 million for community infrastructure upgrades has also been announced.

However, the Budget fails to allocate any new funding for the axed Growing Suburbs Fund, or for a comprehensive program of upgrades to suburban pools and libraries.

OMC Chair Cr Stefan Koomen said councils remain keen to partner with the Victorian Government to deliver the infrastructure growing communities rely on.

“Councils stand ready to work with the government on community infrastructure projects, including new pools and much needed library upgrades – facilities that are essential to liveable, connected communities,” Cr Koomen said.

“But this requires a genuine commitment to significant and ongoing funding that matches the pace of growth in Outer Melbourne.

“In this Budget, the investment response falls short of what is needed, at a time when our communities are experiencing some of the fastest growth pressures in the state.”

Cr Koomen also highlighted the ongoing need for significant investment to upgrade state controlled arterial roads across Outer Melbourne.

“We remain hopeful that further commitments will be made by both the government and opposition parties in the lead up to the November state election,” he said.