A $100 annual "Active Kids rebate" will be paid to parents for each school aged child who engages in sport or swimming lessons in the surprise giveaway of today's state budget.

In another budget giveaway, small businesses and farmers will get some relief with $330 million worth of insurance and tax cuts - with the government abolishing insurance duty for small businesses on commercial vehicle insurance and professional indemnity insurance.

Duties on crop and livestock insurance will also be abolished.

The active kids rebate will form a voucher able to be claimed annually from January 1 to reduce the cost of sport registration or membership fees for after-school and weekend sport.

The rebate will cost the budget $207 million over four years. It comes after The Daily Telegraph revealed on Monday that such a scheme had been recommended by a parliamentary committee.

Treasurer Dominic Perrottet described the measure as "the soul of the budget" and said it was about achieving one of the Premier's priority targets of reducing childhood obesity by five per cent over the next 10 years.

As foreshadowed, the budget contains a giant increase in health and education infrastructure spending with a $4.4 billion increase - with $7.7 billion on building hospitals and $4.2 billion on building schools over four years.

As well as already-announced upgrades at Campbelltown Hospital, Concord and Tweed, Mr Perrottet announced a $720 million upgrade at Randwick (Prince of Wales) to service the marginal seat of Coogee.

Capital upgrades will also occur at Cooma Hospital, Coffs Harbour, Goulburn, Hornsby, Inverell, Maitland, Macksville, Mudgee, Nepean, Shellharbour, Tweed, Wagga Wagga, Wyong, Lismore, Albury Base Hospital and Sydney Children's Hospital at Westmead.

There is also planning money for a new hospital at Rouse Hill and upgrades at Griffith, Tumut, Liverpool and St George.

The budget also contains $1.3 billion for small regional projects such as playgrounds and community facilities in a blatant grab to retain votes for the Nationals in the 2019 state election.

As foreshadowed, the surplus for 2016-17 was $4.5 billion with a surplus of $2.7 billion in 2017-18, a $2.1 billion surplus in 2018-19, and $1.5 billion surpluses in 2019-20 and 2020-21.

"This budget is the envy of the Western world," Mr Perrottet declared in his budget speech.

"Our reform agenda has been a game changer for NSW.

"We are the only state with strong surpluses, negative net debt, a growing net worth, a triple A rating, low unemployment and record investments in services and infrastructure.

"We have come a long way in just six years.

"But we have great ambitions for this state. And our work is not yet complete. This is only the end of the beginning - and I say to the people of NSW - the best is yet to come.

"It's been said the future belongs to those who hear it coming.

"The government hears the future loud and clear.

"We are not waiting for it to come to us - we are acting now."

The government says with its housing affordability measures, including stamp duty concessions for first home buyers buying existing homes up to $800,000, the total tax cuts in the budget amount to $1.6 billion over four years.

Mr Perrottet pointed out that the GST collect from the federal government had dropped to 79 cents in the dollar of the amount NSW citizens pay in GST.

If the GST was awarded on a per capita basis, he said, the difference would be $15 billion over four years to NSW government coffers.

The government not only has achieved zero net debt thanks to its $30 billion sale of the electricity industry but is $7.8 billion in the black.

News Corp Australia

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