Fresh from blowing a $2 billion hole in NSW finances with cuts to school and hospital funding, federal Treasurer Joe Hockey has now helped consolidate a likely deficit next financial year in Tuesday's state budget.

The Commonwealth has brought forward to this financial year a $703 million payment to NSW for the upgrade of the Pacific Highway originally slated for 2014/15.

Helped consolidate a likely deficit: Treasurer Joe Hockey Credit:Andrew Meares

The mid-year review published in December forecast a $1 billion deficit in 2014/15, with a return to surplus in 2016/17.

The decision to bring forward the Pacific Highway payment means that when NSW Treasurer Andrew Constance delivers his first budget on Tuesday, it is likely to include a 2014/15 result worse than had been hoped.