The Regional Development Victoria (RDV) annual report has revealed grants have been cut by $15 million, or 11 per cent, compared to the previous year.
Four years ago, RDV had a total grants pool of $370 million to support development in the regions. Last year, it was just $118 million - a 70 per cent drop.
But what is just as damning is the staffing wages bill at RDV.
Employee expenses in the last financial year totalled $27.9 million - up 17 per cent from $23 million the previous year.
To put it simply, regional Victorians are paying more for public servants, but getting less in return in development grants.
Leader of The Nationals and Shadow Minister for Regional Development and Liveability, Danny O'Brien, said Labor is continuing to ignore regional Victorians.
"The great divide continues. Labor is leaving regional Victorians out in the cold," Mr O'Brien said.
"It is impossible to justify a 70 per cent cut in grants for regional development across the past four years.
"These grants are so important in supporting jobs, infrastructure and helping local economies flourish and thrive."
Mr O'Brien also questioned the staffing cost blow-out.
"If RDV is delivering less grants and programs, why is it spending more in wages? Clearly, there's less work to do," Mr O'Brien said.
"This is a double-edged sword. Regional Victorians are receiving less and paying more for the privilege because Labor can't manage money."
