Victorian Premier Ted Baillieu maintains a budget surplus is achievable as the government undertakes measures to increase revenue and investment in the state.
The government is to sell unused public land and form a body to oversee investment in Victoria as part of a 70-point economic action plan designed to strengthen the state's economic position.
"The government is pursuing major new initiatives to drive growth, investment and jobs," Mr Baillieu said on Friday.
The federal government has dropped its commitment to return the budget to surplus in 2012/13.
Mr Baillieu said the state had been challenged by the weaker national economy but he was confident a budget surplus could be achieved.
"It is our aim, we believe it is important," he told reporters.
"It's our target and we believe it is achievable."
Mr Baillieu said building budget capacity was important for the delivery of services and infrastructure in Victoria.
The Victorian government last week forecast a $137 million surplus for 2012/13 but said $1 billion had been wiped from the state's bottom line since the May budget.
Victoria is one of only two states in Australia - the other being Western Australia - forecasting budget surpluses over the forward estimates, Mr Baillieu said.
"There are always risks but we believe it's achievable and we think it's important to build budget capacity," the premier said.
Mr Baillieu said his government had been urging the federal government to get its house in order.
"Walking away from a surplus is not a budget strategy, running consecutive and consistent deficits is not an economic strategy," he said.
As part of its action plan, the Victorian government will appoint a co-ordinator general of investment and a red tape commissioner to streamline regulation.
Opposition Leader Daniel Andrews dismissed the 70-point plan, saying there was no action in it.
"This document is a whole lot of rehashing, old announcements, lists without price tags, without any sense of how they'll be funded or how they'll be delivered," Mr Andrews said.
But he agreed the Victorian government was likely to achieve a budget surplus for 2013/13.
"I think we can be confident that the Victorian budget will in fact be in surplus," he said.
The economic plan includes establishing Major Investments Victoria, a body dedicated to attracting investment to the state, and the sale of a suite of surplus land including dormant schools and around rail assets.