NSW budget: treasurer takes pot shots at South Australia and Queensland

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Roads spending across the state will total an estimated $72.7 billion over four years according to the Treasurer.

But despite coal royalties dominated by Hunter contributions increasing by $839 million across the forward estimates on last year's budget predictions, the Hunter has mostly missed out on the cash splash.

Digital health infrastructure in NSW has received a bumper investment in the state's 2017 budget, with more than $500 million flowing to digital patient records and a system-wide digital platform.

"We are the envy of the Western world", Mr Perrottet told the budget lock-up media briefing.

The expenditure on health comes after the government on Monday said it would spend $2.2 billion over five years on 123 new and upgraded schools across NSW to create 32,000 for student places and 1500 classrooms.

Treasurer Dominic Perrottet announced $482.5 million towards works on the Northern Road, with an additional $99.3 million to be spent on upgrading Bringelly Road in the 2017-18 financial year.

The results were boosted by stamp duty receipts of half a billion dollars from the recent sale of the state's electricity poles and wires and the demand-driven astronomical prices of Sydney property now at $7.2 billion in 2017-18.

There is also $94.5 million pledged for an extra 400 prison beds at the Mid North Coast Correctional Centre in Kempsey.

In health, the drip-feed to the new Lower Hunter hospital in Maitland continued, with $5 million contributed to the $450 million project before an expected completion date of 2024.

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"We're improving frequencies on key routes, setting up new routes and importantly building new infrastructure to grow and improve public transport in this state", Transport Minister Andrew Constance said in a statement as the budget was being handed down.

"They are making a powerful contribution to our overall economic growth, with over 40% of jobs coming from the regions in the past two years", Ms Berejiklian said.

In another budget giveaway, small businesses and farmers will get some relief with $330 million worth of insurance and tax cuts - with the government abolishing insurance duty for small businesses on commercial vehicle insurance and professional indemnity insurance.

The commitment meant an extra $965 million for the sector in 2017-18, he said.

The budget is forecast to drop to $2.7 billion in 2017/18, with growth to average 1.8 per cent over the next four years to 2020/21. This is only the end of the beginning - and I say to the people of NSW - the best is yet to come.

They say that net debt, now below zero at -$7.8 billion, is set to rise to $18.6 billion by 2021, as the government borrows to fund its infrastructure program.

The 2017-18 funding promise would result in a complete redevelopment of the Tweed Heads Police Station, the government revealed on Tuesday.

There is also planning money for a new hospital at Rouse Hill and upgrades at Griffith, Tumut, Liverpool and St George.

"It's completely unfair on the state of NSW that we're paying a wages bill for the Queensland public service ... and are paying over $1bn in 2021 for South Australians who can't even keep their lights on", Perrottet said as he heralded the government's book-keeping credentials.

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