The Victorian Coalition Government has allocated A$548m ($566.7m) in the 2012-2013 state budget to reduce road congestion in the suburbs of Melbourne.

The funds will be used to construct, upgrade, duplicate sections of roads and remove two level crossings to assist the easy movement of traffic.

Roads Minister Terry Mulder said the investment was needed to better connect new residential growth areas, as well as established suburbs with employment opportunities.

"With more people on our roads it’s vital we invest, particularly in growth areas, to minimise congestion and risks," added Mulder.

"Investing in our roads is paramount to support the economy and Melbourne’s liveability.

"The Coalition Government is committed to ensuring our roads throughout Melbourne and across regional Victoria continue to operate safely and efficiently."

A major portion of the allocated budget is provided for the removal of two level crossings, costing A$350m ($362m) at Springvale Road, Springvale, and Rooks Road, Mitcham, which are causing traffic jams.

In addition to the last year’s A$20m ($20.6m), the government has provided A$136m ($140.5m) for the duplication of the 6.4km Dingley Bypass, between Warrigal Road and Westall Road.

The state budget has allocated A$12m ($12.4m) to duplicate the Stud Road Bayswater, between Boronia Road and Mountain Highway, while Narre Warren-Cranbourne Road at Narre Warren South, between Pound Road and Thompson Road, is set to receive A$49m ($50.6m).

The budget also sanctions A$1m to continue upgrade work on the Cardinia road, between Princess Highway and Pakenham Bypass.

The Minister said the new funding will enable construction work in the next few years.