Building inflation won't hit rail loop price: treasurer

The government is working to secure more federal funding for project, Treasurer Tim Pallas says. (Joel Carrett/AAP PHOTOS)

Victoria can overcome a $20 billion funding gap to build the contentious Suburban Rail Loop and spiralling construction costs will not blow out the final price tag, the treasurer insists.

Tuesday's federal budget had no new cash for the Victorian government's pet infrastructure project, which is expected to cost up to $34.5 billion for the first stage alone.