Unveiling forecast surpluses across the next four years in her first budget on Tuesday, Ms Berejiklian said $591 million would kick start work on the second Sydney harbour rail crossing and Parramatta light rail as well as road and hospital projects.

The projects were to be funded from the anticipated $20 billion in proceeds from the government's proposal to partially privatise NSW electricity businesses.

Those transactions have yet to occur, but Ms Berejiklian said the passage of the privatisation legislation this month meant the funds were now "guaranteed".

The money will come from general revenue as well as the government's infrastructure fund, Restart NSW, into which windfall tax payments, including stamp duty, have been directed.

But the Treasurer was forced to defend not unveiling more measures to address the housing affordability crisis, despite taking a record $7.29 billion in stamp duty this financial year - 75 per cent of which is from residential transactions.

The budget contains $400 million extra for the Housing Acceleration Fund which helps pay for infrastructure to speed up completion of new housing.

Asked why, given the record stamp duty take, the government had not taken further steps, Ms Berejiklian said addressing the supply issue was the best way to ease pressure on house prices.

The government is forecast to reap more than $30 billion in stamp duty to 2018-19 but the budget papers note that the cyclical nature of the property market meants the revenue source is "inherently volatile".

It says "the potential for sharp corrections is a risk to the state's revenue outlook".

Ms Berejiklian also defended the lack of progress towards reversing the $25 billion cut to health and educations grants from 2017-18 announced last year by her federal counterpart, Joe Hockey.

The budget reveals that from 2017-18 and 2018-19, NSW will lose almost $500 million.

"It's a cut to growth funding which is substantially a cut to the budget - we've accepted that from day one," she said.

"We've been very clear about our need to enter into fruitful and productive conversations with our colleagues".

State and territory leaders are due to discuss the issue with Prime Minister Tony Abbott in July.

The budget papers confirm a forecast surplus of $2.1 billion this financial year, rising to $2.5 billion in 2015-16, $3.2 billion in 2016-17, $2.6 billion in 2017-18 and $2.3 billion in 2018-19.

The inflated surpluses are due to changes to how rail grants are accounted for from July 1. The underlying surpluses are $713 million, $756 million, $811 million and $895 million respectively.

The government has extended a 1.5 per cent "efficiency dividend" – or budget cut - across most government departments – a measure that will save it almost $600 million.

This forms part of $1.1 billion in additional savings and cuts in the budget until 2018-19.

An average 2.8 per cent revenue growth between 2015-16 and 2018-19 is forecast to be matched by the same level of expenses growth.

Gross State Product – a measure of the state's production of goods and services – is forecast to be "above trend" at three per cent over 2015-16 and 2016-17.

However, opposition leader Luke Foley said "the surplus is built solely on the rivers of gold from Sydney home owners paying stamp duty".

He said given the loss of dividends when electricity businesses are privatised and the Commonwealth cuts, the inevitable end of the housing boom would mean "the state's finances will be in an extremely poor condition".