The works at Yackandandah have been under way since January but a spokesman for Victorian Regional and Rural Development Minister Jacinta Allan said the state government's contribution had never been officially announced before yesterday.

It involves $300,000 being spent on each of the projects, which are worth $1.2 million overall and involve federal government spending first announced in May last year.

Yackandandah Sports Park vice president Dave McAuliffe said he was surprised the state government was trumpeting its role when the work, which includes the construction of toilets, change rooms and a gymnasium, was nearly finished.

“It’s well and truly under way, a spit on your hand and it would be finished,” he said.

He said there had been a June 30 deadline on the work and it should be done early next month.

The Yackandandah hall redevelopment, which includes a multi-purpose meeting room and the upgrading of a kitchen and toilets, is also nearing an end.

“Hopefully towards the end of July we’ll have it completed,” Indigo Council assets manager Robert Uebergang said.

Ms Allan’s spokesman admitted the funding announcement was simply “formalising” its contribution and that the money had to be allocated by June 30 this year.

Mayor Bernard Gaffney welcomed the announcement of a new $6 million Villages of Victoria campaign, which will showcase towns including Beechworth, Rutherglen and Yackandandah.

“Those three are meccas for tourism, however there are other areas in the shire which we are working with to make them inclusive in our long-term strategy,” he said.

“Indigo Shire has increased its tourism budget and also its event funding budget.

“We recognise events have shown our popularity as a tourism destination for local towns and our major cities in Australia.

“This funding will assist with that.”