Describing himself "unashamedly focused on urban renewal", Mr Barr announced a $2.8 billion infrastructure investment over the next four years, with $825 million of that in the first year.

Public housing will be a central focus with the budget allocating $132 million in capital works for the territory's aging public housing precincts over the next two financial years.

The government has allocated $56 million to redevelop the Red Hill housing precinct and almost $75.8 million for the renewal of Allawah Court, Karuah Flats and the Owen Flats in Civic over the next two financial years.

An extra $1.2 million will be set aside to establish a Public Housing Renewal Taskforce to oversee the redevelopment of properties along the Northbourne Avenue corridor and other major sites under the renewal program.

The funds include both the demolition of the public housing properties and investment in the construction of replacement dwellings.

According to the budget papers, this is the first stage of a four-year program that will provide 1288 replacement public housing properties.

Relocation of tenants is expected to begin in late 2016.

The Land Development Agency's Indicative Land Release Program has increased targets for the release of new dwelling sites in the next four years, which will include the sale and development of public housing stock.

Meanwhile, $167 million will be spent in the coming financial year tidying up Canberra's "garden suburbs and urban villages" – including spending on road upgrades, public transport improvements, upgrading local supermarkets and making suburbs more attractive and accessible.

Mr Barr said he understood there was a high degree of public interest in maintaining local amenities and a list of funding priorities to be completed in the coming financial year includes $1 million in stormwater improvements, $2 million in footpath and cycling improvements, $200,000 in minor safety improvements at playgrounds, and $300,000 in public toilet upgrades across the city.

Civic will receive $247,000 to continue the Bunda Street revamp and improve bike rack capacity, while Braddon and Haig Park will share in $1.5 million for improved footpath and lighting.

Woden Bus Interchange will receive $3.1 million for Stage 1 of its redevelopment, while major road upgrades continue their progress – sharing in $90 million of funding this financial year.

The Majura Parkway to Majura Road link will receive $9.3 million while Gungahlin's Horse Park Drive road works and water control pond share in $8.9 million of spending.

Budget approval has also been granted to fund a $31 million duplication of Gundaroo Drive between Gungahlin Drive and Mirrabei Drive, to improve traffic flow to the rapidly growing north.

Currently the road carries up to 23,000 vehicles a day, with development in Throsby, Casey, Kenny, Bonner and Moncrieff expected to increase congestion.

Stage 1 includes widening of a 1.6 kilometre section north of Sandford Street to the Barton Highway.

Work on the project will commence in August with a round of community consultation as the tendering process is rolled out.

Work could take between one and two years.

Then a feasibility study will take place on the second stage of the duplication to the Barton Highway, to be funded from future budgets.

Mugga Lane Resource Management Centre will receive $21 million over the next two years to expand and ensure Canberra has landfill capacity until 2020.