If Prime Minister Malcolm Turnbull wants to understand why he is losing traction in Australia's second most populous state, he could do worse than take a look at the carve-up of major projects funding.

An analysis of data from the federal budget update shows Victoria has been severely short-changed, having been allocated an annual average of $507 million for major project over five years.

That's equivalent to $82 per person, less than one-third the national per capita average of $257.

In contrast, Queensland will get an average a $366 per person, South Australia $307, Western Australia $307, NSW $253 and Tasmania $229.

Part of the explanation for the heavily skewed distribution of funds is the politics. Other states, particularly Queensland and NSW, are simply seen as playing a more crucial role in the Coalition's electoral fortunes.

Of the Coalition's 24 seats regarded as marginal - held by less than 5 per cent - eight are in Queensland and six are in NSW and four are in Victoria.

Then there is the fact that Victoria and the Commonwealth have struggled to agree on major projects. The Abbott government was, for example, strongly in favour of the East West Link project, rushing to hand over $3 billion before it was even needed.

When the project was dumped by the incoming Labor government, half of the cash remained in the state's bank account, becoming a source of conflict hampering negotiations over other projects.

The money Victoria is getting - about $2.5 billion over five years - is mainly made up of a re-allocation of the $1.5 billion held by Victoria from the East West Link.

That money has been matched by Victoria, and used towards the next stages of the M80 Ring Road Upgrade, the Murray Basin Rail Project, and a future widening of the Monash Freeway.

All of this at a time when Victoria is experiencing Australia's strongest population growth, increasing by 2.1 per cent last financial year, compared to 1.4 per cent for the nation as a whole.