Local Government has welcomed the budget, suggesting the Federal Government kept its election commitments on local road funding for 2008-09 and continued its commitment to funding local roads at announced rates to 2014.

 Australian Local Government Association (ALGA) president Paul Bell said he was pleased “the Federal Government recognised the economic and social benefits of investment to meet the transport expectations of local communities".

The budget’s commitment of $75 million for a series of studies into urban congestion (to be matched by $57.5 million from the states) was also welcomed.