Tuesday's ACT budget will include funding to improve bus services in southern Canberra and will also see $775,000 set aside for the design of a new bus depot in Woden.

A new all-day direct service, which will be called the Weston Line, will connect Woden, Cooleman Court and the city.

Extra bus stops will also be opened in Wright while Coombs will receive some new stops, including one at the Charles Weston School. Route 83 and Xpresso 783 services will be extended to Coombs.

It is anticipated the bus services will begin operating in the "next couple of months".

Transport Minister Meegan Fitzharris and Chief Minister Andrew Barr will announce the funding on Monday.

Ms Fitzharris said the improved public transport would help meet the needs of the growing Molongolo Valley.

"The Molongolo Valley is growing quickly and there are more and more people living there and wanting to use public transport," she said.

There has been a 59 per cent increase in patronage since public transport services started in Wright in September 2014.

"Obviously there's a demand for public transport there and we're really pleased to be able to meet that demand," Ms Fitzharris said.

"We expect these initiatives will also increase public transport patronage so more people will choose to use public transport, which is great news for them, but also great news for people who might otherwise need to use our road network. It'll mean less cars on our road and therefore less congestion on our roads.

Public transport would be an important part of Tuesday's ACT budget, Ms Fitzharris said.

"This is an investment in an integrated transport network and tomorrow's [Monday] announcements will be an indication of just how significant the introduction of Transport Canberra is, it's the biggest and most exciting change in public transport in Canberra's history," she said.