Labor has pledged to co-fund a $640,000 "makeover" of Wagga's Baylis and Fitzmaurice streets in order to boost retail trade.
Wagga Labor candidate Dan Hayes said if Labor won power at the NSW general election next weekend, it would supply a $320,000 grant to Wagga City Council for paving and planter boxes.
Mr Hayes said the pledge was about "giving the main street a bit of a makeover".
"It's one of the ways that council can help increase retail in the main street as we know in regional areas that is declining," he said.
"Any funds allocated by the council to this project can now go to other projects."
It would be up to council to contribute the remainder of the project either through cash, services or materials.
"It's an existing council project that they have already planned to do," Mr Hayes said.
"When I took in the offer that we had funding to go 50/50 in, this is what council staff chose."
Wagga-based Nationals upper house MP Wes Fang questioned how the money was allocated and whether other councils in the electorate such as Snowy Valleys were missing out.
"I don't know the genesis of this project, it has just appeared," he said.
"Dan is a councillor on Wagga City Council; is Wagga council getting favourable treatment? Has there been a competitive application process for this money? Have another councils been able to apply for it?"
Wagga MP Joe McGirr said he had heard from Wagga retailers that they had other priorities.
"The feedback I get from businesses in the main street is that one of their main issues is access to parking," he said.
"I think it's important that we make sure the street is as attractive as possible and that we support businesses.
"It really is about parking and access to shops; I think that's more of an issue but I'm certainly not unsupportive of something that is going to beautify the city."
Greens candidate Ray Goodlass said there were state higher priorities for the money, such as health, education and climate change adaptation.
"The grant is welcome but at its comparative young age Baylis and Fitzmaurice streets are not on my priorities for an upgrade," he said.
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