the vic state budget handed down today 30/5/06),other states...

the vic state budget handed down today 30/5/06),other states budgets and recent federal budget all goes well for those companies with exposure to the infrastructure sector which we all knowl is well overdue for some much needed expenditure on now and for the future

it will alllow them with some confidence to plan for the future as demand for services should pick up for most if not all participants

***** Record $5bn capital works promised *****
From: AAP
May 30, 2006
VICTORIAN Treasurer John Brumby today delivered on his promise for a record infrastructure program, with $4.9 billion to be spent on capital works in the 2006-07 Budget.

Mr Brumby's balance sheet looks rosy despite the spending on roads, schools and hospitals, with a $317 million surplus expected next year.
The Budget also has good news for business with cuts to land tax, payroll tax and WorkCover premiums worth $1.4 billion in the next four years.

But there was no good news for young Victorian families looking for a first home, with no relief on stamp duty in the coming year.

Mr Brumby boasted his capital works program was a record for the state and foreshadowed more than $12 billion in spending in the next four years.

"This Budget commits the largest ever capital works in the state's history," he said.

"It's going to make a huge difference to our hospitals, our schools, our transport system, our aged care and our community safety.
"We're investing in the things we promised to do."

Nevertheless, he admitted the Government would turn to lenders to help pay for the works – with net state debt due to surge from $2 billion in June 2006 to more than $7 billion in four years.

Spending on roads, rail and public transport takes the lion's share of the infrastructure program, with $3.3 billion in upgrades, including $727 million to improve the state's busiest road route, the Monash-West Gate corridor through Melbourne.

About $1.3 billion will go to upgrade Victorian hospitals, including almost $850 million to replace the Royal Children's Hospital.

The Government plans to build 13 new and replacement schools, modernise more than 50 others and renovate two technical colleges – a program worth in total almost $450 million.

Some of that spending relies on the planned sale of the Snowy Hydro scheme going through.

Parents of children in preparatory school and Year 7 will also get an unexpected bonus of $300 each to cover education costs – a one-off program that will benefit 125,000 families.

The state economy's growth is expected to strengthen from 2.5 per cent in 2005-06 to 3.25 per cent next year.

State revenue is expected to rise 4 per cent to almost $32.5 billion, but expenses will rise even quicker by 4.5 per cent to just over $32 billion in 2006-07.