The newly elected federal government says Melbourne's maligned East West Link is officially "dead" on the same day as construction began on the Suburban Rail Loop.

Infrastructure Minister Catherine King declared the $4 billion announced by the previous government for the East West Link nonexistent, saying there's no money set aside to build it.

"There's no money, there's absolutely no money. It's a complete fraud," King said.

Infrastructure Minister Catherine King said Melbourne's maligned East West Link was officially "dead". (Nine)"It's dead in the water as far as we're concerned."

The government has allocated $2 billion into the $35 billion Suburban Rail Loop build so far, with more expected to be announced.

Premier Daniel Andrews marked the moment the digger broke ground on the loop, by meeting graduates hired to help build it today.