“Too many large-scale projects are receiving funding commitments without adequate planning,costings and programming to sufficiently manage the significant increase in delivery costs within a volatile market.”

This month,the International Monetary Fund recommended all levels of government reconsider the nation’s infrastructure pipeline,saying it was adding inflationary pressures to the economy that could force the Reserve Bank to hold interest rates higher for longer.

Of the $33 billion in cost blowouts,$14.2 billion is on projects not under way,with the review warning full-cost analysis of these works is not yet complete.

The review found many of the blowouts were due to the “ad hoc” way in which the government dealt with projects,noting that it was not responsive to “evidence of looming cost increases or aligned with long-term plans and strategies,and lack transparency and consistency”.

Projects for the coming financial year are already more than $1 billion over budget.

The review estimated that the true cost of projects currently budgeted at $9 billion in 2027-28 was actually more than $18 billion.

It identified 56 projects yet to start that are already showing signs of cost overruns and another 36 that should be “re-scoped”,with savings pumped into other works.

Apart from major infrastructure,the review said the government should significantly increase funding to local councils under the roads-to-recovery program which largely pumps cash into regional areas. This week,the Grattan Institute said councils needed $1 billion more a year to maintain their local road networks.

The review also backed a lift in funding and an expansion of the black spot program.

King said the review had shown the $120 billion investment program the government had inherited could not be delivered in its current form.

But she said the government would deliver infrastructure that boosted productivity and improved the lives of all Australians.

“With the co-operation of the states and territories we now have a forward plan of projects that are properly planned and targeted to unlock significant economic,social and environmental objectives,” she said.

Apart from changes to the timeline of works,the review also backed a move back to a 50:50 funding split for major infrastructure between the federal government and the states and territories.

It also urged that from 2024-25,the states provide an annual infrastructure plan to the federal government which would list priority projects as well as how the jurisdiction would manage cost pressures and other impacts,such as population growth and housing.

Cut through the noise of federal politics with news,views and expert analysis.Subscribers can sign up to our weekly Inside Politics newsletter.