NSW Treasurer Dominic Perrottet says federal-state financial relations are “a mess” and has used the state budget to unveil a NSW push for sweeping changes to Australia’s federation.

The NSW government has appointed an expert panel to review federal financial relations from a state perspective. It will identify ways to improve the current system and make it more reliable.

NSW Treasurer Dominic Perrottet has delivered his third budget. Credit:Steven Siewert

Mr Perrottet said the aim was to promote a more dynamic form of “bottom-up federalism” driven by the states.

“In our three-tier federal system financial relations are a mess,” Mr Perrottet said in Tuesday's budget speech.