Expected $3.7 billion NSW budget surplus to benefit transport, roads projects

The NSW government is splashing out on public transport and road upgrades in this year's budget as part of a record infrastructure spend.

File image of NSW Premier Mike baird Source: AAP

Sydney commuters will gain from asset leasing and belt-tightening by the NSW government, with the state's 2016/17 budget pointing to record spending on roads and public transport.

The coalition announced on Tuesday $20.2 billion would be spent on transport and roads in the new financial year as part of an unprecedented $73.3 billion four-year spend on infrastructure.

The news comes on top of an expected $3.4 billion budget surplus for 2015/16, which the government has credited to fiscal discipline and asset recycling, and a surplus of $3.7 billion next year.

The first stage of the Sydney Metro rail project will move closer to completion in 2019 with a $2.7 billion cash injection, while $277 million will going to light rail projects in Sydney's CBD and southeast, Parramatta, and Newcastle.

The state government will also spending more than $400 million to upgrade its trains and rail infrastructure and boost the number of services to booming western Sydney suburbs, while setting aside more than $1 billion to procure more trains.

"This year's transport budget is focused on delivering our massive infrastructure program that will transform NSW," Transport Minister Andrew Constance said in a statement as the budget was handed down.

"Underpinning our massive infrastructure investment are the funds to continue to grow services on existing public transport networks and ensure they are maintained to high standards."

Sydney ferry and bus users won't miss out in the cash splash, with funds set aside for ten new ferries and 218 buses, while the city's northern beaches bus line will get $210 million for planning and infrastructure.

Roads Minister Duncan Gay said the government was spending a record $9.7 billion on roads and maritime and freight infrastructure, with the ongoing Westconnex project receiving the lion's share - an injection of $2.9 billion.

Somewhat less - $2.1 billion - will be spent upgrading key regional highways and $125 million will be used to ease congestion, including fixing notorious bottlenecks.