The Berejiklian government will spend $1 billion over the next two years rebuilding roads, rail lines, schools and bridges in towns that have been devastated by the bushfires.

Premier Gladys Berejiklian and Treasurer Dominic Perrottet said the new allocation of money would ensure the recovery process could start without delay.

"The money will provide an immediate source of funding to ensure key infrastructure is restored so that communities can get back on their feet as soon as possible," Ms Berejiklian said.

"The bushfire season is far from over but we know how important it is for communities to start the recovery process where possible."