The Federal Government will use a $5 billion fund to pay for major public transport projects in tomorrow's federal budget.

The Melbourne Metro and Sydney Metro rail projects will share in half the funding, which will be made available through the Federal Government's Asset Recycling Initiative.

The fund was first established under the Abbott Government, but initially excluded public transport schemes.

New South Wales will receive $2.19 billion, while Victoria will get $2.4 billion.

The Asset Recycling Initiative provides funding for transport proposals, but only if the state and territory governments privatise assets to fund a share of the proposal.

State-federal funding is likely to come from the privatisation of the NSW electricity network and the Port of Melbourne.

Major Projects Minister Paul Fletcher said the projects would provide an economic boost.

"Infrastructure is enormously important to our productivity, to our competitiveness, and to the liveability of our cities and our major centres," Mr Fletcher said.

"The Turnbull Government in this budget is making a very substantial commitment to infrastructure spending."

The Sydney Metro rail project, which will build a new rail line from Bankstown to Rouse Hill via a new link through the Sydney CBD, will receive $1.7 billion in federal funding.

The Melbourne Metro rail project, which is yet to receive the green light from Infrastructure Australia, will receive $857 million from the Federal Government.

An upgrade to the Ipswich Motorway, west of Brisbane, will receive a $200 million boost.

The Federal Opposition's infrastructure spokesman Anthony Albanese criticised the Federal Government for failing to commit any new money for infrastructure.

"There is no new infrastructure investment coming from this budget," he said.

"This was a fund that was set up essentially to say the only way we will fund infrastructure for public transport is if state governments sell their assets."

Victorian Treasurer Tim Pallas said his state was always expecting to receive the money for the Melbourne Metro.

"This payment is the state's entitlement, it's not a gift for Scott Morrison to disperse wherever he pleases," Mr Pallas said.

"This money is money the Commonwealth owes the state for the lease of the Port of Melbourne. This is not new funding."