New South Wales should lead the country by regulating "sharing economy" businesses such as Uber and Airbnb rather than trying to block their operations, the state's Opposition Leader says.

Luke Foley will deliver his budget reply today after Treasurer Gladys Berejiklian unveiled her first budget on Tuesday.

He said he would use the occasion to flag a private member's bill he plans to introduce later this year.

The bill will seek to legalise and regulate businesses like the ride-sharing service Uber by introducing checks on drivers to ensure they have no criminal record and are properly insured.

Uber, which is backed by technology giant Google, provides an alternative to traditional taxis by connecting private car owners with passengers in need of transport.

He said the NSW Government should not fight the sharing economy.

"The Government's defying reality by pretending that the emerging ride-sharing industry is illegal or could be fined out of existence," Mr Foley said.

"It won't be, it can't be. It's here to stay, let's regulate it in the public interest.

"The people have voted with their feet: a million ride sharing trips in Sydney last year. That number will only grow."

Mr Foley said 24 jurisdictions around the world had enacted proper regulation of ride-sharing to protect consumers, but two NSW transport ministers had refused to meet Uber representatives.

Mr Foley's move is likely to anger the NSW Taxi Council, which has lobbied the State Government to enforce bans on the service.

It is understood NSW transport authorities have posed as passengers to catch and fine illegal drivers.

The Opposition's main criticisms of the budget to date have been directed at "unsustainable" levels of stamp duty and tax collection.