New South Wales government plans record spend on infrastructure

New South Wales has the strongest economy and the strongest budget position of any state, treasurer Gladys Berejiklian said as the state government released its budget for 2016-17.

"Our state is the engine room of the national economy and the infrastructure capital of Australia," Berejiklian said in her budget speech.

"After five years of fiscal repair, our budget is comfortably in the black, we are investing more in infrastructure for the future and our triple-A credit rating is secured," she said.

Planned infrastructure spending includes AU$41.5bn on transport, an increase of 16% over last year, plus AU$6 billion on energy projects and AU$3.7 billion for water and wastewater projects. Other sectors due for funding include education, justice and housing, Berejiklian said.

The infrastructure programme will be funded partly from the state's own funds, and partly from Restart NSW, a dedicated infrastructure fund set up in 2011 by the state government. Restart NSW has AU$20bn to invest, funded by the lease of 49% of the state's electricity network business and recycling incentive payments, according to the state government's budget announcement.

Sydney-based Margaret Cole of Pinsent Masons, the law firm behind Out-Law.com, said: "The budget is a very positive result for NSW. The government’s commitment to the ongoing improvement of the state’s infrastructure will be welcomed by all participants in the sector, and the state’s residents."

Earlier this month, Queensland's government announced it will use AU$4bn from a public sector pension scheme to invest in infrastructure in the state and pay off debt.

The pension scheme is AU$10bn in surplus, and state treasurer Curtis Pitt said the move would not affect pension payments.