The New South Wales Government is on track to deliver a record $2.1 billion surplus in tomorrow's state budget.

The surplus, which is largely due to a stamp duty windfall fuelled by high house prices, is about $1.8 billion higher than forecast in December's mid-year review.

The budget will also include $1.4 billion for health infrastructure and hospital upgrades, $456 million to build a new primary school at Parramatta and upgrade two other schools, and a record $1.2 billion for corrective services.

Treasurer Gladys Berejiklian is also expected to announce cuts and savings of $1.1 billion over the next four years.

The Baird Government previously announced it would also extend its 1.5 per cent efficiency dividend on all government departments for another four years in the hope of saving almost $600 million by 2017-2018.

Premier Mike Baird said the budget would set NSW up for the future.

"Clearly this is a result of some hard work but importantly that money is getting work for the people of New South Wales," he said.

"The extra money that we can put towards the infrastructure, the extra nurses, teachers and police, all of those are great things for the people of New South Wales."

Mr Baird acknowledged that stamp duty from the booming Sydney property market had contributed to the surplus.

"The budget is tomorrow so the final numbers will come in then, but yes there is extra stamp duty than we expected," he said.

"But importantly when the windfall revenues come in what we have set up, unlike under Labor where that money was frittered away, we are taking that money, putting into 'Restart NSW' and investing it in infrastructure."

Baird 'highest taxing Premier of NSW': Opposition

Shadow treasurer Michael Daley has criticised the Government's economic management, saying the surplus is simply due to higher taxes and record stamp duty revenue fuelled by Sydney's property market.

Opposition Leader Luke Foley said Premier Mike Baird was increasing taxes while cutting services. ( ABC News: Brigid Glanville )

"Mike Baird is still behaving like a banker, he's gouging out of control stamp duty profits from home purchases," he said.

"He's increasing over 400 state taxes and charges but he's still cutting services like health, education and child protection. Mike Baird is the highest taxing premier of NSW."

Greens MP John Kaye said the Government could re-employ all the TAFE workers it cut in its last term, if it put just 10 per cent of the surplus back into education spending.

"They're racking up a series of surpluses like trophies on the wall but what they're not doing is providing services for the people of NSW," he said.

"TAFE is in a dreadful state as a result of their policies, they could sacrifice just a little bit of their budget surplus and recreate an optimistic future for TAFE."