Vic treasurer vows minimum $100m surplus

Dumped police minister Peter Ryan did nothing wrong in the role, Victoria's premier says. Source: AAP

THE new treasurer has promised to deliver minimum $100 million surpluses and a budget that funds better services for Victorians.

Michael O'Brien, the former energy and gaming minister, says he's excited about his new role and has already exchanged text messages with his old boss, former federal treasurer Peter Costello.

"You hope one day you might get that call. The fact it actually came was something which was terrific," he said during his first press conference as treasurer.

Mr O'Brien, who'll release the state's half-yearly finances on Friday, said the economy was on track.

He said the government would not go on a "debt-fuelled spending binge" in its May budget, but would ensure Victorians reaped the benefits of the coalition's good financial management.

"My general intent is to try and make this a better place to do business and you don't do that by ramping up taxes. You do it by better management," Mr O'Brien said.

"When there is strong economic management, the dividend to the community is better services and better infrastructure."

He said he would strive to maintain the state's triple-A credit rating and keep the budget in the black.

"In boom times you will have much larger surpluses and you will use those surpluses to pay down your debt, because that's the responsible thing to do," he said.

"The bottom line should still be that (minimum) $100 million surplus, even in the lean times."

Mr O'Brien pointed to the state's February 5.5 per cent jobless rate, down from 6.1 per cent in January.

While acknowledging the volatility of monthly unemployment figures, he said more than half - or 37,900 of 71,500 - jobs created nationally in February were in Victoria.

"The best form of social welfare is a job," Mr O'Brien said.

He repeated his predecessor Kim Wells' attack on the commonwealth's lack of detail on key policies, such the Gonski education reforms.

"This commonwealth government - we've seen a lot of ideas being floated, kites being flown, but we don't see the price tag," Mr O'Brien said.

"To expect any state government to sign up to a commonwealth program without knowing the price tag is just irresponsible and we won't be doing it unless we get some detail."

Mr O'Brien said he would continue to prosecute the government's case for reform of the way the GST is divided between the states.

Premier Denis Napthine said the $1.6 billion Port of Melbourne expansion would drive jobs growth in the freight, import and export sectors.

He said the Doncaster rail link was another important infrastructure project, as well as the East West Link road, a Melbourne Metro rail tunnel and the Port of Hastings development.

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