People living in regional NSW will reap the benefits of the state's multi-billion dollar sale of the Snowy Hydro.
Deputy Premier John Barilaro on Tuesday announced the government will legislate to ensure the $4.154 billion windfall goes into a fund for legacy projects outside of the state's cities.
"We said every cent of the full value of the Snowy deal would go to rural and regional NSW, and today we absolutely confirm this commitment through legislation," he said.
Tuesday's budget has allocated a massive $40 million for "scoping studies" to investigate potential projects that could be supported by the fund - including the possibility of inland ports and national and international freight services.
"They will be projects that have a significant uplift in those regions," Treasurer Dominic Perrottet said.
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"We don't want metropolitan Sydney just to grow, we really want to make sure regional NSW goes to great success."
The fund is on top of other promises, including nearly $26 million to promote tourism and regional business - particularly indigenous tourism.
Almost half of that will go towards new tourism and cultural projects in the state's far west, plus $8.5 million for tourism and environmental projects in Tamworth and the Clarence Valley.
The government has already announced new money for three radar weather stations, an extra $284 million to help drought-affected farmers and $50 million for primary industries research projects.
Mr Barilaro said $550 million will also be spent on health infrastructure projects - noting two-thirds of the 40 hospital upgrades underway or due to start next financial year are in regional NSW.
"This budget makes an unprecedented investment in better services, stronger infrastructure, and greater economic opportunity for the 2.5 million people who call regional NSW home," Mr Perrottet said.
