Budget to hand down $5b for major projects

States are set to receive money for road and rail projects in Tuesday's federal budget.

States are set to receive money for road and rail projects in Tuesday's federal budget. (AAP)

There will be a $5 billion kitty for major building projects across the country in this year's federal budget.

NSW will get $2.2 billion and Victoria $2.4 billion for road and rail projects, The Australian reports.

WA will gain $750 million, there will be some money for South Australia and Queensland will receive funding for the Ipswich Motorway.