The Victorian government announced the long-awaited new station would be built through funding allocated in this year's budget which was handed down on Thursday.

Government minister and member for Northern Victoria Jaclyn Symes visited the station on Thursday to announce the replacement of the Bridge Street site which dates back to the 1950s.

"The new Benalla Police Station will give the community a secure and safe place to get support and help, while giving our local police officers and staff upgraded, modern facilities," Ms Symes said.

"This upgrade will be a welcome addition to town, replacing the outdated facilities.

"Building the new station on the existing site means residents can be assured there will be no disruption to police services during construction."

The new station, which is expected to open in 2024, will be linked with an adjoining law court.

There has long been calls for the old police station to be replaced, with the State Opposition promising it would be build a new centre if it was elected at the 2018 election.

The project is the biggest single investment in the North East in this year's budget.

A school at Mount Beauty will receive $2.32 million to upgrade and modernise its Block C.

Mental health care improvements with a regional focus will be funded at Wangaratta and Benalla.

The former involves follow-up care with the latter about "front-door" embedded help.

The Albury and Wodonga Motorcycle Club will receive $105,000 for an irrigation watering system to cover all its tracks.