A new "statement of ambition" has committed the ACT government to promoting Canberra as Australia's arts capital, by developing and promoting arts industries to new audiences by taking a "bold step".

The government will also formally explore how to position the ACT as an internationally recognised city of design, the statement said.

The ACT's arts policy will be updated in the coming year for the first time since 2015 and the government will overhaul the arts funding model to make it more transparent and "meet the changing needs of the ACT, to reset the arts sector, and to increase vibrancy, relevance, and sustainability".

The government will also look to stage a multi-month arts expo to showcase Canberra as a destination for creative practitioners and audiences after pandemic restrictions have eased.

The upcoming ACT budget will include more than $13 million in extra funding for artists, arts organisations and facilities, including an extra $4.2 million for early works to expand and redevelop the Canberra Theatre Centre.

That project was identified as top priority in ACT Labor's arts election commitments last year.

The Cultural Facilities Corporation will get a $2.4 million funding boost, designed to help rebuild its theatre business beyond COVID-19 lockdowns, while the Tuggeranong Arts Centre will get $2 million for a theatre upgrade.

The ACT government will also spend $2.1 million to finish lead remediation work and reimburse stallholders at the Old Bus Depot building in Kingston, and spend $960,000 on an expansion of the Canberra Museum and Gallery on London Circuit.

The budget will also include $200,000 for a new public art work created by a female or non-binary artist, and money for government-run arts facilities.

Arts Minister Tara Cheyne said Canberra had an opportunity to take its arts sector to the next level, by working to promote and support the city's unique offering.

Since taking on the arts portfolio after last year's ACT election, Ms Cheyne has now committed to having all arts funding visible in a single document, so the community and people in the sector can more readily keep tabs on what the government is supporting.

"By being very clear about where all of our investments are at the moment, I think that will start us off with a really healthy conversation in this community about what our focus should be, that will guide those decisions. That's exactly what I want to hear from the community and engage very openly about," Ms Cheyne said.

Ms Cheyne said it was important to offer that transparency so people in the creative sector, along with the broader community, could more readily identify possible gaps in what was being supported.

"It was really important, I think, to be really transparent and proud about all of the investments we've been making, and over a very long period of time we've got a very proud history of our investment and support for the arts sector in the ACT," she said.

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Arts organisations have previously criticised the ACT government for not being clear in how it was spending its arts funding.

Ms Cheyne said the arts had a public value, which meant it was appropriate for the ACT government to support the sector, but public money would need to be spent wisely.

"What we're trying to do with this ambition is if we grow our sector in the ACT, and if we do have that reputation, it will keep growing and that will further support the sustainability of the sector and not just with government support," she said.

"But I think government very much has a role under these strategies in assisting people - our artists and creators - to create and for art to be accessible."

Ms Cheyne said she was also open to ideas to encourage more non-traditional arts facilities to host exhibitions and events.

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