The NSW government is worried by cuts to health and education but has applauded the Commonwealth for investing in the state's infrastructure projects.
"NSW treasury estimates the state is being asked to find an extra $1.2 billion over four years in our health budget," NSW Treasurer Andrew Constance said on Tuesday night.
"The NSW government has major concerns over the Commonwealth's budget, with what appears to be cost-shifting in health and education services."
The state government wants to discuss the "potential impact on service delivery" the "tough blueprint" outlined by federal Treasurer Joe Hockey will have on NSW.
Mr Constance is also concerned about the announced $7 co-payment for every visit to the doctor, saying it could overwhelm the state's already stretched hospital emergency departments.
"We need to have a long and detailed discussion with the Commonwealth about further details regarding this announcement," he said.
But he was happy with the $11.6 billion infrastructure package, which will fund projects including the second stage of WestConnex and Pacific Highway upgrades.
Comment is being sought from the state opposition.
Unions NSW secretary Mark Lennon told AAP lower-income earners would be hit the hardest.
"They're going to pay more for their petrol, they're going to be paying more to take their families to the doctors, there's going to be questions around their welfare," he said.
"It's going to make it all the more difficult to make ends meet."
The budget, he said, was the first step towards the abolition of social safety nets, and Medicare was the government's first target.
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