The federal government has announced a significant increase to Roads to Recovery funding for Victorian rural councils from re-introducing the indexation of fuel excise to inflation.

The move is expected to raise $3.6 billion over five years to the end of 2018-19, and all future funding from the initiative will go towards road infrastructure.

This is on top of the $2 million forecast under the Roads to Recovery program over the next two years.

Wangaratta’s chief administrator Ailsa Fox said it was a major windfall.

“We will be able to do major works with this money, instead of just little jobs here and there,” she said.

“One of the options for the money is a new bridge over Three Mile Creek.”

“We will also be looking at road works needed in two growth zones in North West and South West of Wangaratta.”

The council’s team of administrators were delivered the news in personal while visiting Canberra last week.

Meanwhile, other Victorian councils are waiting to be told what percentage of the additional funds with come to them.

Indigo mayor Bernard Gaffney welcomed the cash injection from the federal government, but fears the council could lose $1 million a year from the state government Roads and Bridges program.

“They won’t commit to funding,” he said.

Cr Gaffney said road maintenance was an ongoing and costly issue for rural councils like Indigo.

“We depend on a good road network to help drive economic development and productivity in our region,” he said.

“We have several large agricultural manufacturing industries in our shire and good roads are important for them to get their products to market.

“And our main towns depend on good road networks for access to work and education.

Cr Gaffney said he was looking forward to further talks to establish the amount of funding.

Wodonga Council’s director planning and infrastructure Leon Schultz was also excited.

“We welcome more funding for infrastructure under the Roads to Recovery program and await formal advice on what this might mean for Wodonga,” he said.