It is is part of a $1.45 billion package for Victoria’s regional rail that was announced ahead of the state budget.

But the state government has relied on money it said it was owed from the federal government, under a program that gives a 15 per cent incentive to the states for the sale of public assets – in this case the $9.7 billion Port of Melbourne lease.

Federal Transport Minister Darren Chester said the state government had missed the deadline for applying for the money.

“What we have seen today basically is Premier Andrews has written a Santa wish list to the prime minister without any of their own money on the table,” he said.

“They need to provide us with a business case and show some real commitment with a dedicated regional rail fund in this week’s state budget.”

Premier Daniel Andrews said Victoria was entitled to a the federal incentive for the Port of Melbourne lease.

“Every single dollar that’s required to fund these projects is Victorian money,” he said.

“I really hope that we don’t have to argue about this.

“We can just get on and get these upgrades done.”

Ballarat’s allocation is for a new train shed at Ararat, so trains can be kept there overnight, which will add an extra morning service.

It will also upgrade the line’s signalling.

Public Transport Minister Jacinta Allan said it would help both passenger and freight trains.

“The timetable will be finalised closer to when the works have finished,” she said.

“Most importantly there has been a lot of strong representations out of the Ararat community, particularly the council, and they have impressed upon us the need for extra services in an out of Ararat.

“We have listened very carefully to that and by constructing stabling there in Ararat it means trains can stay there overnight.”

The $39 million would fund stage two of the Ballarat line upgrade, with stage one already underway.

There was also $435 million for the Ballarat line, $100 million for the Warrnambool line, $110 million for the Surf Coast and Geelong and $91 million for Bendigo.

The plan was criticised by opposition Western Victorian MP Joshua Morris who said Premier Daniel Andrews had to be clear about who provided the cash.

“Despite continued chaos on the Ballarat rail line Daniel Andrews has seen fit to announce just a fraction of the funding other services are receiving,” he said.

“Daniel Andrews needs to come clean about who is funding this, because it appears federal money is being used.

“Funding for rail services is important, but if Daniel Andrews is claiming credit for federal government work he needs to give credit where credit is due.”

A location for a new train shed at Ararat has not yet been chosen by the state government.

 – With The Age