MUNDUBBERA Horse and Pony Club will see significant improvements and upgrades to its facilities after the federal government announced it will provide $66,036 in grant funds.

The investment is aimed at increasing sporting participation and getting the local community more active, more often.

The funding came from the Move It Aus Community Sport Infrastructure Grant program which is providing funding to make improvements to local sporting facilities.

"Our government has prioritised investment in local grassroots sports because we recognise the wider health, social and community benefits that come from greater activity and participating in sport," Member for Flynn, Ken O'Dowd said.

"It is a key priority of our government to promote the social and health benefits of physical activity and sport and our investment to upgrade facilities and infrastructure will provide a real encouragement for those local residents not currently active."

The grant will provide upgrades and improvements to the club's multi-purpose facility.

The number of applications received nationally - 2,053 - was far more than anticipated and to meet the evident interest, the Government will allocate an additional $30 million for projects in early 2019 from the existing pool of applications.

"This demand has demonstrated that sporting and community organisations are crying out for help to upgrade their facilities and because of the Liberal National government's responsible economic management and deliver a budget surplus, we are in the position to increase the investment," Mr O'Dowd said.