Public projects are funded by an appropriation approved by a Parliament (either state or Commonwealth). The Government (specifically the Treasurer) of the day introduces the finance bills to Parliament, generally on a yearly basis, leading to the passing of a financial year State Budget or Commonwealth Budget. The Budget process is lead by a Treasurer who is supported by the Treasury.
In cases where funds for a specific project are sourced outside the jurisdiction's budget base (e.g. Commonwealth funding of a state road or water project), the state will underwrite the risks (financial and non-financial) for the successful delivery of that project. (Commonwealth funds are normally transferred to the State Treasury and not to the end recipient department or agency.)
In practical terms, these players are collectively referred to as representing the state. For the purposes of this Study, the words 'the state' and 'government' can be considered synonymous.