Buying a home in Melbourne just got ever so slightly more affordable, with the state government’s announcement that it would be slashing stamp duty fees.

Victorians building a house worth less than $1 million are the big winners from Tuesday’s state budget announcement, with fees on their new builds cut by 50 per cent.

The government also announced that stamp duty on existing properties is set to be cut by 25 per cent with the changes already brought into effect and set to run until June next year.

$500 million has also been set aside for the Victorian Homebuyer Fund which will provide equity to Victorians in a bid to reduce home deposits and get people buying sooner.

The homebuyer scheme was just one of a raft of major announcements in Tuesday’s state budget, which saw the Andrews government unveil a spending blitz aimed at aiding the state’s recovery following its prolonged coronavirus lockdown.

Victoria will rack up about $350 billion in debt in an attempt to stimulate the local economy, equating to about $23,000 for every person in the state.

Schools and infrastructure are the big winners from the record spending, $80 billion has been set aside for infrastructure projects across the state, including $50 billion in new initiatives.

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Melbourne will also get a new $1.5 billion contemporary art gallery as part of the NGV, 10 new community hospitals and 162 school campuses across the state.

All up, the big-spending budget is expected to generate 400,000 jobs by 2025, with half of those being created by 2022.