The Victorian Government has pledged new funds for 40 post-graduate leadership scholarships for psychiatrists in an attempt to ease pressure on a mental health system dubbed “crumbling, threadbare, overwhelmed and obsolete”.

The plan was announced as part of the Victorian budget, which was delivered on Monday, with a commitment also made to fund additional director-of-training positions.

The Royal Australian and New Zealand College of Psychiatrists said the state’s psychiatrists were stretched too thin in the public system and this prevented them from delivering the care they wanted to provide.

“It is hoped that this will stem the flow of psychiatrists leaving the public sector, which is currently happening at alarming rates,” said Professor Richard Newton, chair of the college’s Victorian branch.