Parents of school age children and first-home buyers are among the big winners from a New South Wales budget that the Treasurer says is the "envy of the Western world".

Parents will receive $100 every year for each of their school age children.

The rebates will not be means tested, but will have to be spent on fitness activities like swimming lessons or sporting registration.

Treasurer Dominic Perrottet said it would help children keep healthy while engaging in the community.

"This is a great announcement for your children today, we want them to be active," he said.

However, Opposition Leader Luke Foley said the money should have been spent reducing cost of living pressures for those who "genuinely need it".

"When you combine soaring power prices, runaway unaffordable road tolls, fines going up, people's pay packets aren't moving at all, it's much, much harder when it comes to cost of living."

Help for homebuyers

The state's finances continue to benefit from Sydney's property boom.

The Government will reap $6.8 billion in residential stamp duty revenue in 2016–17, an increase of nearly 10 per cent on the previous year, thanks to the strong performance of Sydney's property market.

Stamp duty, which accounts for about 10 per cent of the state's revenue, will continue growing over the coming years, albeit at a slower rate.

From July, stamp duty will be scrapped for first-home buyers on homes up to $650,000 and will be reduced for properties valued between $650,000 and $800,000.

Grants of $10,000 will be available for first-home buyers who are building a house, provided the total value of the house and land does not exceed $750,000.

First-home buyers will also receive $10,000 grants for existing properties valued up to $600,000.

The budget forecasts that 75,000 homes under construction will be completed in the next financial year.

However, it includes no incentives or quotas for affordable housing in new developments for low-paid workers.

No road toll relief

A total of $73 billion will be spent on road and transport infrastructure over the next four years, including continued spending on WestConnex, the South East Light Rail and the Sydney Metro.

NSW Treasurer Dominic Perrottet is forecasting a $4.5 billion budget surplus. ( AAP: Paul Miller )

However, the Treasurer defended his decision not to provide any relief for drivers facing rising road tolls.

"This is not a bottomless pit of cash," Mr Perrottet said.

He said he understood motorists were under financial strain, but that new roads would make their lives easier.

"Under Labor there wouldn't be any roads to travel on," he said.

Major hospital upgrades

The budget includes an additional $2.8 billion over four years for hospital upgrades.

The Treasurer announced $720 million will be spent on upgrading Prince of Wales Hospital in Sydney's east.

The budget also includes major upgrades for Campbelltown Hospital ($632 million), Concord Hospital ($341 million) and a new Tweed Hospital redevelopment ($534 million), which were previously announced.

But the Opposition labelled the funding a "cruel hoax" because many of the hospital projects would take more than five years to deliver.

"They should have started them years ago," Mr Foley said, accusing the Government of engaging in an "orgy of propaganda".

Palliative care services will receive a $100 million cash injection over four years, allowing extra nursing specialists to be employed in regional areas.

Education budget boost

The education budget is up 11.5 per cent on the previous year.

About $4.2 billion will be spent on school maintenance and building works, to cater for the growing number of enrolments.

There will be new or upgraded high schools in Picton, Sydney Olympic Park and Canley Vale.

Meanwhile, there will also be new and upgraded primary schools at Eastwood, Scholfields, Riverbank, The Ponds, Greystanes and Liverpool.

GST share for NSW to drop

This budget forecasts a reduction in GST revenue of $1.4 billion over the next four years.

Mr Perrottet said he would continue to lobby the Commonwealth for a greater share of GST revenue.

"It's completely unfair to NSW that we're paying the wages of the Queensland public service and we're paying over $1 billion in 2021 to South Australia, who can't even keep the lights on," he said.

Despite the revenue challenges, the Treasurer is expecting a $4.5 billion surplus this financial year, reducing to $2.7 billion in 2017–18.

Average surpluses of $2 billion are expected over the next four years, thanks to strong stamp duty revenue and proceeds from the Government's privatisation program.

The Government will make $23 billion in savings over four years, aided by increasing the public sector efficiency dividend from 1.5 to 2 per cent in 2018.

Average surpluses of $2 billion are expected over the next four years.

A nation-leading 3.5 per cent growth rate is forecast for the next financial year.

The 4.8 per cent unemployment rate is the lowest in the nation and is forecast to remain around 5 per cent over the next two years.