The cornerstone of the funding is $2.24 million provided to Headspace's 13 sites across Victoria, including Shepparton, to deliver surge teams of clinicians in specialist child and youth mental health services.
The clinicians will curb significant waiting lists faced by Headspace patients since the pandemic began.
GV Health clinical director Vibhay Raykar said "any additional funding" for mental health was welcomed.
“The mental health and wellbeing of the Shepparton community has taken a hit in the last couple of years, especially made worse by the global pandemic and related lockdowns,” she said.
“The lockdowns have resulted in significant challenges for children and young people and their parents.
“Additional funding to both Headspace as well as the acute mental health services is a great move as they can both work together to meet the increased demands.”
Mental health services across the state during the pandemic have seen a 30 per cent rise in referrals of distressed children and young people.
The number and severity of eating disorder presentations amongst young people alone has surged by 40 per cent across the state since the pandemic began.
Dr Raykar said presentations to emergency departments with serious mental health problems had also increased.
“The existing resources in the mental health system have struggled to keep up with the rise in demand,” she said.
“The most important resource in the mental health system is the well trained workforce that supports young people and their families.
“I hope this funding addresses this urgent need.”
Phone helplines and digital outreach programs established last year will also receive a $3.1 million boost to help vulnerable Victorians isolated over the pandemic.
Beyond Blue will receive $1 million, Lifeline will receive $1.2 million and Eating Disorders Victoria will receive $500,000.
Acting Premier James Merlino said the current restrictions had been a "tough time" for Victorians’ mental health.
“Many are struggling,” he said.
“This is about delivering the mental health support Victorians need right now, as well as into the future as we recover from the pandemic.”
Mental health and wellbeing was a big winner in the Victorian Government's latest budget, with $3.8 billion allocated to rebuild mental health services across the state.