State Treasurer John Brumby announced the funding during a visit to Ballarat, speaking to mayors from across the region at the Buninyong Botanic Gardens.

Up to $300,000 per council has been made available to help communities battle the impacts of the drought.

Mr Brumby said the money was part of a $150 million government strategy.

"We all know we are going through what is arguably the worst drought in Victoria's history," he said.

"As part of our strategy, we have approved $14.4 million across the state for a local infrastructure works program."

The funding will pay for 99 projects across the 11 shires, including infrastructure and capital works and parks and townscape improvements.

"These will make a difference," Mr Brumby said.

"They are projects that can start now, they are projects that will generate jobs and they are projects that will help communities."

Ballarat Mayor David Vendy said the projects would be labour-intensive.

"They will target skills that our rural workers and industries affected by the rural recession already have, allowing work to commence immediately," he said.

"While this may not be the solution to the drought problem, is certainly a significant step towards easing the pressure faced by our community in this time of hardship."

Mr Vendy said the city would spend its funding on replacing three bridges at the Buninyong gardens and establishing a new pedestrian path, including steps and a boardwalk, from the gardens to the Upper Gong Dam.

"We will also be refurbishing community halls at Cardigan, Warrenheip, Ascot and Scotsburn," he said.

"We will be erecting new signage and fencing at Lake Burrumbeet, improving foreshore picnic facilities at Lake Learmonth and undertaking bridge and island works at Lake Wendouree."