The Public Transport Users Association said the budget confirmed the first parts of the Victorian Transport Plan, which even if completed would "make little difference to most people".

PTUA president Daniel Bowen said the commitment to build a rail station at Lynbrook would help residents in that area, but he was disappointed that the station at Pakenham Lakeside had not been funded.

A State Government spokesman said planning was under way for a Lakeside station, which would be called Cardinia Road station.

"It's not called Lakeside because there is already a Lakeside station on the Puffing Billy Tourist Railway."

He said the station would be funded when detailed planning is expected to be completed later this year.

The Lynbrook station is one of three new stations in growth areas to be built at a cost of $152.6 million over five years.

Mr Bowen blamed the omission of funding for a track extension and station at Cranbourne East on a cost blow-out for a South Morang rail project.

The State Government spokesman denied the cost blow-out.

"The project is on time and on budget. In the Victorian Transport Plan ... Cranbourne East is a medium-term project and therefore is not included in the 2009-10 budget cycle."

He said work was expected to begin between 2015 and 2018.

Mr Bowen welcomed the $105.2 million allocation towards a $650.6million pledge for 20 X-Trapolis trains.

South Eastern Metropolitan Region MP Gordon Rich-Phillips criticised the Government for "abandoning" the third Dandenong line project.

"We took the stance at the time of the Government's commitment to a third track that it did not need to be built.

''They could have built passing lanes, which are much cheaper, and then put the saved money into other things."