Suburban Rail Loop, Metro and other big road and rail projects have to prove their value: Catherine King [Video]

A national funding deal will toughen the rules on road and rail spending worth $125 billion after the federal government said Victoria would have to prove the economic case for its controversial Suburban Rail Loop.

The new terms will put more onus on the states to prove the business case for mammoth construction, while the federal government also wants them to fund an equal share of regional road spending to create more incentives to keep costs down.

Federal Infrastructure Minister Catherine King said the changes would demand better planning from the states before federal money was paid, declaring the new terms “can and must” prevent delays and cost blowouts.

Days after the opening of Sydney’s new Metro, …