Vic budget surplus more than expected VICTORIA'S road and rail projects will be more affordable because of a higher than expected surplus of $316 million for 2012/13, the state government says. The most recent estimate had been for a $177 million surplus for the 2012/13 financial year. But the state government says good budget management led to a higher surplus. Treasurer Michael O'Brien said the result would allow Victoria to moderate its debt and borrow money at cheaper rates. "That means that our infrastructure program is something which is more affordable and it means that you can bring forward projects more quickly than you might have otherwise done," he told reporters on Monday. But unions say the surplus is built on reductions to the budgets of vital services and jobs cuts. United Firefighters Union secretary Peter Marshall said the fire services are in crisis after the budgets of the CFA and MFB were cut by $66 million. The Community and Public Sector Union said the surplus came on the back of 6000 government jobs being cut. Premier Denis Napthine said expenditure growth of 2.1 per cent for the financial year was significantly lower than the average rate in the decade to 2009/10 under the previous Labor government. "Our surplus, combined with substantial investment infrastructure, confirms the coalition government has the right strategies in place to manage the Victorian economy," Dr Napthine said. The surplus came at the same time as the government was delivering record funding for health services and schools, he said. Mr O'Brien said while other governments around the country were either in deficit or forecast to go into deficit, Victoria's economy was strong. Victoria's employment grew by 0.9 per cent in 2012/13 - higher than the forecast 0.5 per cent, he said. The average unemployment rate was 5.6 per cent, slightly lower than the forecast 5.75 per cent. The state opposition will deliver their response to the figures on Monday afternoon.