The new Dunedin Hospital took a giant step forward this afternoon, with the Government setting aside the funding for the 10 year, billion dollar-plus project as part of the Budget.

Finance Minister Grant Robertson says the funding will be set aside, and apportioned over the life of the project.

There's also been a billion dollars set aside to redevelop the rail system including three hundred and seventy five million dollars for new wagons and locomotives.

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