Vic surplus has 'blood on its hands': ALP

The Victorian government's billion dollar surplus was built by taking a knife to TAFEs and neglecting hospitals and schools, Labor says.

Shadow Treasurer Tim Pallas said ordinary people could not see the benefit of a surplus if it left every school and hospital in deficit.

"This surplus has blood on its hands," he told parliament in Labor's response to the budget on Thursday.

"It was built with the biggest cuts to TAFE in Victoria's history, with institutional neglect of our hospitals and schools.

"It's made our state a hard place to raise a family."

Mr Pallas said the budget forgot about fundamentals, such as school and hospital funding, and aged care.

Victorians also deserved better than a panicked plan on public transport, he said.

"They're the world's last convert to the cause of public transport," he said.

"They've gone from a do-nothing government to an 'oh my God', do something government."

Mr Pallas said the Melbourne rail link, the $11 billion budget centrepiece, was inferior to the previous Melbourne metro plan which included five new stations in areas of need and would solve gridlock.

"It's the evil twin. It's a ghost train," he said.

"Melbourne metro improved access to the city loop, this one doesn't.

"This plan has all the elements of being drawn on the back of a napkin on budget day.

"There's no business case and no consultation.

"No firm date for completion, just panic."

Labor would consult the experts about the projects Victoria needs, he said.