More than $200 billion was earmarked for Victorian infrastructure projects in Tuesday's state budget, including $27.1b over the next financial year.
Global ratings agency S&P has warned record spending on Victoria's big build will ensure the state's cash deficit remains large, despite a newly minted $31.5b COVID-19 debt repayment plan.
Premier Daniel Andrews denied his government should have further scaled back spending on its infrastructure pipeline to make a bigger dent in net debt, which is forecast to top $171.4b by mid-2027.
"It's what we must do and they're projects and programs that Victorians voted for," he told reporters on Thursday.
"If you don't build a world-class public transport system as we hurtle along to becoming Australia's biggest city, then our quality of life will be fundamentally compromised."
The 2023/24 budget papers show there has been a 0.3 per cent increase in costs on government-funded infrastructure projects over the last 12 months but timelines have risen by 21 per cent.
Mr Andrews attributed the timeline blowouts to the COVID-19 pandemic, labour shortages and global supply supply chain issues.
"Whether you're doing a really small project in your own home or something much bigger, there are challenges," he said.
"We can't get everything we need, including people at the exact moment we need them."
Victoria's spending on infrastructure is forecast to slow from $54.6b in 2022/23 as the future of several major projects remain under a cloud.
Melbourne Airport Rail, Geelong Fast Rail and North East Link had no completion dates or allocated funds listed in the state budget because of a 90-day federal infrastructure review.
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