The state's 2018/19 budget on Tuesday allocated $705 million for a range of mental health support measures including $232.4 million for new and existing acute inpatient beds to help about 12,800 Victorians.

More than $100 million will be used to create six crisis hubs at Monash Medical Centre, St Vincent's, Royal Melbourne, Geelong, Sunshine and Frankston hospitals to take mental health or drug addiction patients out of emergency departments.

Adults who pose a risk to others will be forced to have treatment under a $58.9 million package.

Treasurer Tim Pallas's fourth budget also delivered $619 million for major hospital upgrades with almost $400 million for a stand-alone heart hospital.

There's funding for three new 30-bed residential rehabilitation centres in regional Victoria, a new 20-bed youth hub and an extra $6.7 million to help up to 80 people each year at an existing facility in the Grampians.

The budget also delivers $124 million to implement an electronic medical records system for the Parkville health precinct to an extra $627 million for regional hospitals.

Mr Pallas said the budget included "historic action on mental health" which would save lives.

"For too long, these Victorians have been marginalised and misunderstood," he told parliament.

But despite the allocation, Victorian Healthcare Association chief executive Tom Symondson said "a significant gap remains in community-based mental health".

There was more than $2 million in the budget for a panel which will guide incoming assisted-dying laws and be responsible for establishing the model and determining which drug will be used.

The Victorian branch of the Australian Medical Association Victoria said money needed to flow for palliative care in regional and rural areas so people don't turn to assisted-dying.

Opposition spokeswoman for mental health Emma Kealy said Labor could not be trusted to tackle the state's drug crisis, raising concerns about the location of a supervised injecting room near a North Richmond school.

"Only Daniel Andrews could attempt to argue that patients and medical staff need protection from ice addicts but our youngest school kids don't," she said in a statement.

Australian Associated Press