Corangamite Shire Council approved its $53 million 2021-2022 budget on Tuesday night, citing the pandemic-induced reduction in tourism as a key challenge moving into the new financial year.

The council remains debt-free for the fourth year in a row with a $3.3 million operating surplus.

Rates will increase by 1.5 per cent.

The council will make $400,000 more from rates and charges, with an income of $23 million up from $22.6 million last year.

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Cr Geraldine Conheady said the budget struck the right balance.

"I feel really comfortable with what we've come up with, it's a good balance with capital expenditure while still having a strong focus on our core objective to provide high-level services to the community," she said.

"We're very keen to maintain a strong financial position and Corangamite has always had a good track record with these responsibilities.

"I'm proud of this budget and I think it's been put together very well."

A new $21 million capital works program includes $4.6 million for roads - down from $4.7 million last year and $5.3 million for the Port Campbell town centre upgrade, pending matched funding from the state and federal governments.

Youth services took a cut from $203,000 to $162,000 but tourism got an $87,000 boost to $485,000 and economic development an additional $287,000 to just over $1 million.

Footpaths will receive $125,000; $110,000 will go to new playgrounds and skate parks; and there will be $105,000 for apprentices and trainees.

The waste management charge will decrease slightly, by 0.78 per cent, reflecting an offset of savings from waste collection from the previous year.

The council's waste services spend will fall from $3.8 million to $3.1 million in 2021-2022.

Households will pay $2 less for waste collection, at $356 per rateable property.

Some of the major road projects include widening and rehabilitation of Linton Road ($675,000), Carpendeit-Bungador Road ($365,000) and Depot Road at Camperdown ($340,000) and rehabilitation of East Hill Road ($375,000), Williams Road ($250,000), Blind Creek Road ($214,000), Kilnoorat Road ($213,000), and Stewarts Road ($130,000).

There will also be upgrades and sealing on Parkers Access Road and Moonlight Head Road ($250,000).

Grants programs continue to be supported with $80,000 each for facility grants and events and festivals grants, $60,000 for business incentive grants and $50,000 for community grants.

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