The Australian Local Government Association (ALGA) has welcomed the delivery of the Federal Budget, saying its increased spending for local initiatives comes at a crucial time for communities.

"This plan offers opportunities over the coming years to invest in areas vital for our future growth and to build stronger communities," ALGA President Felicity-ann Lewis said.

"Funding such as $40 million in additional assistance to rebuild flood-damaged communities and $12.9 million in support to enable councils to connect to the NBN have been positively received.

"Local government especially welcomes the Budget's allocation of $44.1 million for municipal and essential services in Indigenous communities.

"We also welcome funding of $9.1 million over four years to create a 'one-stop shop' for grants advertising and reporting and $9.9 million over two years to upgrade remote community landing strips."

Mayor Lewis welcomed the Government's decision to again bring forward the first two quarterly payments of the Financial Assistance Grants (FAGs) of the 2013-14 financial year, worth $1.3 billion into 2012-13.

FAGs funding assists councils to deliver vital local services and infrastructure and councils are receiving a total of $2.2 billion under this program in 2012-13.