The Victorian Auditor General’s report said a 60 per cent cut to maintenance funding and poor maintenance practice had led to a severe deterioration across the road network.

This includes the loss of $1 million each year under the axed country roads and bridges program.  Council also receives cash from the roads to recovery program.

The report said VicRoads made repairs when roads were in poor condition, which costs more than fixing them earlier.

“Not enough funding is allocated to road maintenance to sustain the road network,” it said.

“VicRoads also cannot demonstrate clearly that it is making the best use of its existing maintenance funds.

“Its approach to road pavement maintenance is reactive, with maintenance generally being carried out only when it becomes critical.”

VicRoads chief executive John Merritt said the report made recommendations already being put in place.

“We're pleased that the Auditor General's recommendations support the reform program and actions VicRoads already has underway,” he said.

“This audit reflects a past approach and we are well advanced in a reform program that is transforming the way we plan and deliver road maintenance.”

While Roads Minister Luke Donnellan hit out at the auditor general’s report, saying the previous Coalition government massively underfunded roads between 2010 and 2014, Hepburn Shire mayor Sebastian Klein has previously defended the government’s spending throughout the municipality. 

In June a group of disgruntled rural councils called on the government to boost its regional roads spending, however Cr Klein said projects such as the $1.3 million Daylesford roundabout upgrade and safety barriers between Trentham and Daylesford showed the government was taking notice of roads in the shire.