The state budget will include $123 million to revitalise neighbourhoods along Parramatta Road, with hectares of open space, bigger parks, urban plazas, and new cycling areas.

The funds, to be announced in the budget on Tuesday, are the first for construction under the government's urban amenity improvement program to transform areas around Sydney's oldest roads.

The state budget included $123 million to revitalise neighbourhoods along Parramatta Road, but said nothing about extensive plans for light rail drawn up inside Transport for NSW. Credit:Kate Geraghty

"This must be one of Australia's ugliest road corridors and our budget investment will enable the transformation of these plans from artists' impressions to construction," Treasurer Dominic Perrottet said.

"We will start to see our hopes for this corridor come to fruition in the next 12 months, which is exciting for the communities that live around Parramatta Road."