Melbourne’s lord mayor has defended eye-watering spending on New Year’s Eve fireworks and Moomba Festival in the council’s draft 2023-24 budget.

The City of Melbourne is expected to allocate $28.2 million to events and festivals in the budget, with $4.9 million slated for New Year’s Eve celebrations — a $1 million hike on the amount spent last year.

But lord mayor Sally Capp says the council is “very careful” with funding allocation.

Press PLAY below to hear why the City of Melbourne is splashing out on event spending