The Federal Budget has dropped and Australia is headed into deep debt thanks to strong deficit spending. That could be good news for infrastructure groups and, as such, I've got my eye on the Transurban Group (ASX: TCL) share price.
Why is the Federal Budget good for the Transurban share price?
There was plenty to unpack from last night's Federal Budget announcement by Treasurer Josh Frydenberg.
The government is set to push Australia into $1 trillion of debt but all that money has to go somewhere. $10 billion of that is earmarked for infrastructure to go with the government's existing $100 billion plans.
That could mean major infrastructure players like Transurban could benefit. I think the Transurban share price will be one to watch when the market opens today.
More infrastructure spending could mean more subsidies and project support for major employers and spenders like Transurban.
It's not just the Aussie toll road operator that I'm watching. I think other infrastructure shares like Lendlease Group (ASX: LLC) are worth a look.
The Federal Budget showed the Coalition is serious about spending Australia out of a recession. I was already quietly bullish on the Transurban share price but I think this helps cement that even further.
High-quality assets are hard to come by, especially at scale. That means major operators like Lendlease and Transurban could benefit from a cash splash.
When times are tough, it's good to have a strong balance sheet to fall back on. Even if share prices fall, I like the comfort of hard assets compared to growth that supports valuations for the likes of Afterpay Ltd (ASX: APT).
Foolish takeaway
There's plenty to take away from last night's Federal Budget. I think the increased $10 billion for infrastructure spending is good news for infrastructure players in general.
The Transurban share price is down 4.2% this year but could be worth watching in 2021.
