The federal government plans to spend at least $7 billion on new infrastructure projects in an effort to boost the sagging economy, Transport Minister John Baird said Monday.

The measures will be included in Tuesday's federal budget, Baird told a news conference in Ottawa.

"We will be making investments in roads, bridges, water and sewer systems, as well as transit," he said.

While he didn't provide any further details, Baird did offer the following breakdown of how the money will be spent over the next two years:

  • $4 billion for an infrastructure stimulus fund to help provinces, territories and municipalities.
  • $2 billion for repairs and construction of colleges and universities.
  • $1 billion for sustainable green infrastructure projects.

Opposition leaders, provincial premiers and mayors have called for billions to be spent on infrastructure projects to boost the economy and have urged the federal government to streamline the approval process.

Baird said the government is determined to speed up the process.

"We are ready to cut red tape and duplication and get these projects moving quickly," Baird said, adding the new projects will provide "hope and opportunity" for Canadians worried about their futures.

"It is important we make sound investments. We'll be quite vigilant in this regard. We do believe we can make some changes administratively to speed up the green-lighting of projects," he said.

Liberal infrastructure critic Gerard Kennedy said the Harper government has a low credibility rate when it comes to moving ahead with such projects.

Of the $1.5 billion pledged for infrastructure projects under the 2007 Building Canada Fund, only $300 million has been spent because of red tape, said Kennedy.

"This is an area of high skepticism," he said.

He also said it's not clear that Baird is talking about new money, noting the government has recycled spending announcements in the past.

Many elements of Tuesday's budget have already been leaked, including billions of dollars for social housing, job retraining, agriculture and tax cuts.

The government expects to have a $64-billion deficit over the next two years.