Higher than expected revenue from payroll tax and Melbourne’s booming property market will help the Victorian government deliver a healthy surplus over the next four years, the Treasurer says.

The budget surplus will be $2.9 billion in 2016-2017 and will grow to $9.2 billion over the following four years.

The surplus for 2015-16 is $1.9 billion. Treasurer Tim Pallas said Victoria’s finances were in very strong shape.

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“Our economy has been buoyed by strong population growth, strong business confidence and business investment, a strong property market and jobs growth that now sees more than 3 million Victorians employed for the first time ever,” he said.

“That growth in the economy has contributed to the solid state of the Victorian government’s budget and our surpluses.”

Mr Pallas said the budget would focus on delivering investment in schools, hospitals and transport while also saving for the future.

A $25 million commitment to overhaul the state’s planning system was also announced, including to start digitising on-paper building applications.

Victorian Premier Daniel Andrews has announced a raft of spending measures. Photo: AAP

“It is important that we have greater efficiency in terms of the approval process for straightforward applications,” Planning Minister Richard Wynne said.

The government has already announced a number of measures, including the tripling of royalties for companies mining brown coal.

The stamp duty surcharge for foreign property buyers will increase from 3 per cent to 7 per cent, while the land tax for foreign owners of empty properties will rise to 1.5 per cent.

The government has also committed $84 million to manage sexual and violent offenders in the wake of Masa Vukotic’s murder last year.

The state has also benefited from increased revenues from the goods and services tax (GST).

“That’s due to overall growth in the GST pool and higher relativities – that is a better share for Victoria,” Mr Pallas said.

Labor inherited a strong financial position: Opposition

Opposition treasury spokesman Michael O’Brien said the government inherited the state’s strong financial position.

“The Labor government has increased taxes at a huge rate. We’re seeing windfalls in stamp duty, windfalls in GST, and the government has announced two tax increases in this budget,” he said.

“It’s about time the government started delivering some cost savings to families and businesses rather than constantly raising taxes.”