THE Victorian government could sell off state-owned assets such as sporting grounds and public housing estates to fund key projects such as the East West Link road and Melbourne Metro rail tunnel, a business lobby group says.
The Victorian Employers' Chamber of Commerce and Industry (VECCI) has also urged the coalition government to consider taking on more debt, as long as the state's triple-A credit rating is preserved.
Executive policy manager Steven Wojtkiw said new ways of financing infrastructure such as the East West Link and Melbourne Metro rail tunnel must be examined, including selling off under-used public land.
"It's really about exploring some new options or approaches to potentially raise some additional money for the government in what is a very tight fiscal context," he told AAP as VECCI launched its May budget submission.
"We've mentioned some of the sporting precincts. There is potentially also surplus public land that's yet to be released."
Mr Wojtkiw said one option would be the privatisation of public housing commission sites.
"That obviously brings with it some social and equity issues for the wider community to discuss," he said.
Treasurer Michael O'Brien has vowed he won't use his first budget to go on a "debt-fuelled spending binge", stressing the importance of maintaining the state's triple-A credit rating.
Mr Wojtkiw said there were plenty of examples of countries, including Singapore, Canada and Germany, that maintained solid credit ratings while lifting net debt.
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