The federal government is committing more than $167 million for major capital works for critical Canberra roads and has lodged funds for the southern light rail expansion as part of a multi-billion dollar national infrastructure spend in Tuesday's federal budget.
While more infrastructure measures are expected for the territory on budget night, the government has earmarked $26.5 million to duplicate the remaining sections of William Hovell Drive, $5 million to fund a further Gundaroo Drive duplication and $2.5 million for upgrades to Pialligo's Beltana Road.
The new ACT infrastructure projects are part of a national rollout of details on Monday from the Morrison government's 10-year Infrastructure Investment Program.
While the focus now is on road and light rail projects, there will be other forms of infrastructure unveiled on Tuesday by the federal Treasurer, Josh Frydenberg.
Prime Minister Scott Morrison said the ACT projects 200 support more than 200 direct and indirect jobs across the territory.
"Our record funding commitment is creating jobs, boosting business investment, while securing Australia's Covid recovery," Mr Morrison said in a statement.
The William Hovell Drive duplication project supports the developing areas of Molonglo Valley and west Belconnen.
Officials estimate more than 20,000 vehicles per day currently travel on this section of road and peak-hour traffic is often congested.
After two earlier upgrades, the equally stressed Gundaroo Drive is being further upgraded to a dual carriageway between Ginninderra Drive and the Barton Highway.
Describing the ACT investment as a "bonanza in infrastructure spending", ACT Liberal Senator Zed Seselja said he hoped better roads would improve lives.
"As a Canberran, I'm constantly looking for opportunities to address roads that are under stress," the senator said.
"That's why we've delivered funding for the Monaro Highway, the Tuggeranong Parkway, and now we're duplicating William Hovell Drive which is so important for Canberrans in West Belconnen getting to and from work.
"Projects like these, like the duplication of Gundaroo Drive, are critical in making sure our roads are able to flow and we're spending less time in traffic and more time with the family."
The Commonwealth road funding matches funding from the ACT government. The federal government said it was looking forward to working constructively with the ACT government on the projects.
The 2021-22 budget also sees $132.5 million in federal funding realised for the stage 2A of the Canberra's light rail. Federal funds for the expansion were announced by the Commonwealth in February so it was not listed in the last budget in October.
An extra $800,000 in federal funding to complete a variable speed limit system for the often traffic-snarled Tuggeranong Parkway between Cotter Road and the Glenloch Interchange has also been included in the budget.
Deputy Prime Minister and Minister for Infrastructure Michael McCormack said the infrastructure spending was part of the government's COVID-19 recovery plan.
Federal Labor also wants to invest in roads and has been calling for extra infrastructure spending to kick-start the economy after Covid.
Labor Leader Anthony Albanese wants "ambitious, nation-building" infrastructure projects, such as high-speed rail.
Labor also wants to embark on new social housing development plans and invest in the energy grid to power the manufacturing sector with cleaner energy.
