The government is planning a mammoth spending boost in its October budget, with a focus on creating jobs via long-term infrastructure projects.

Deputy Prime Minister Michael McCormack flagged water supply projects, such as new dams, as key to creating new jobs and his calls were backed by Mr Joyce.

"I think that's incredibly important to our recovery," Mr Joyce told the Leader.

"There are so many sites in our electorate that are designed for dams, whether it's Mulla Mulla Creek, Malpas Dam, or in the north of our electorate. Even in the Tamworth area there is certainly some places ideal for dams."

The push for more water storage projects comes almost a year after the federal and state governments announced $480 million for the new Dungowan Dam.

"The big project I think our nation needs is the movement of water from the north of Australia, down into the Thompson, Warrego and Darling rivers," Mr Joyce said.

"That would open up the whole of western Queensland and ensure water security for western NSW and create environmental water for some parts of the system.

"I think that would be the nation-building infrastructure project that would have a huge economic return to Australia. As well as that, it will help some of those areas regularly hit by drought weather those kinds of drought events in the future."

The former Nationals leader and Deputy Prime Minister said projects such as new dams would go a long way in aiding the country's economic recovery from the COVID-19 pandemic.

"One thing I will always be really happy with is the money I got for the Inland Rail and while it doesn't go through Tamworth, the pipes for the project were made in Tamworth," he said.

"These infrastructure projects have an effect everywhere, not just where they are built. We've got to be really mindful of getting this economy flowing again because it can't run on social security."