From January 1 next year, every Victorian child will receive free public transportation, the state has promised.

New Youth Myki, which is valid across the state, will save up to $755 per year for the program (fees for the annual student post). People under the age of 18 in the non-Mirki area are also eligible for travel for free.

The proceeds will apply to all forms of public transportation, including tram, train, bus and coaching services.

Prime Minister Jacinta Allan said this means “every day, there is free public transportation for every child everywhere”.

"Family is in trouble, and I'm standing by their side," she said.

The government says more than one million children and their families will benefit. The plan will cost $318 million in four years.

Public Transport Secretary Gabrielle Williams said it would save “thousands of dollars a year for many struggling families.”

"The cheaper schools run, cheaper weekends are on the footsteps, and families don't have to worry about one thing," she said.

In the 2025/26 budget, Treasurer Jaclyn Symes will be issued on Tuesday, and the government also provides free weekend transportation funds for seniors. Allen said it will save more than $360 per year for seniors.

Senior card holders across the state can currently travel for free in neighboring areas, but the move will be expanded to cover the entire state.

The 50% weekday discount will continue.

“We have added hundreds of weekend services and now we can offer them for free for seniors on weekend trips – whether it’s going to see family or exploring Victoria, public transportation is a better option,” Williams said.

The move will cost $2.2 million in four years.

On Monday, Allen announced that the budget will also be spent on "public transport blitz" of $5 billion. Much of that money ($4 billion) is to start a large project that turns the Sunshine Station into a "super station" connecting the train lines, including future airport routes.

$727 million will “open” the subway tunnel and $98.7 million to increase service frequency on seven train lines.

Victoria's infrastructure said in a recent report that barriers to using public transportation include accessibility and frequency. Independent agencies say that if people feel unsafe, they may not use public transportation and the suburbs are built better than new developments.

Its recommendations include faster bus service speeds, new bus rapid transport networks, more bus and coaching services in the region, and the expansion and electrification of Western trains.

The economic outlook for Victoria, including S&P Global Rating, is stable. Standard & Poor's analyst Rebecca Hrvatin said she expects debt to continue to rise, predicting the government's "heavy" infrastructure plan to cost $23.5 billion a year.

“What we will look for in the next budget is the state’s commitment to controlling operating costs and stabilizing debt levels,” she said.

- With AAP