School, hospital cuts concerning: Vic govt

Cuts to commonwealth funding over the next decade will create a gap in funding for Victoria's schools and hospitals, Victorian Treasurer Michael O'Brien says.

Mr O'Brien welcomed the $3 billion contribution towards the full East West Link project and new investment into medical research.

However, he said the government was concerned about a reduction over time in federal funding to schools and hospitals.

"Victoria will continue to meet its obligations as outlined in the state budget, however no state or territory is in a position to fill all funding gaps left by the commonwealth," Mr O'Brien said.

State opposition leader Daniel Andrews said Victoria's school, TAFE and hospital problems would be made worse by the tough federal budget.

"Under Tony Abbott, Denis Napthine and the Liberals, the crisis in our schools, TAFEs and hospitals will get even worse," Mr Andrews said.

"This budget hits Victoria harder than any other state. And it hits families hardest of all."