Among the outlays is a major boost for the rail infrastructure projects in the Sydney area and the introduction of electronic ticketing.

NSW transport minister Ms Gladys Berejiklian says that $A 3.3bn will be allocated to the North West Rail Link over the next four years with early construction work due to commence this year. $A 360m has been allocated this year for preparation of major construction sites, property acquisition and a second Environmental Impact Statement on the 23km link from Rouse Hill to Epping. She added that the budget funding will also allow major construction contracts to be awarded with tunnelling scheduled to start in 2014.

However, the NSW government is yet to secure federal backing for the estimated $A 8.5bn project with premier Mr Barry O'Farrell trying to convince federal ministers of the need for support. He had hoped that $A 2.1bn designated by the federal government for the cancelled Epping - Parramatta line in suburban Sydney would be diverted to the project, although an agreement is yet to be reached.

Elsewhere, Berejiklian says major population growth in southwest Sydney is catered for through a $A 397 million allocation to continue construction of the South West Rail Link, a 11.4km extension of the Sydney CityRail commuter network from Glenfield to Leppington which is due to be completed in 2016.

"Customers will also see real progress on an enhanced and integrated public transport network as part of our promise to correct years of neglect and bring the state's transport services to a world class standard," she says.

Other allocations include:

• $A 116m to begin construction of the 5.6km Inner West Light Rail Extension from Lilyfield to Dulwich Hill, including nine new stations plus an extra $A 25m to plan for future light rail developments.

• $A 148m this year for a programme to improve access to the public transport network, including station upgrades, better accessibility to CityRail Stations, improved parking and transport interchanges and commuter wharf improvements.

• $A 50m to progress the roll out of Automatic Train Protection, $A 50m towards the state's digital train radio programme and $A 14.5m towards the provision of internal emergency door release systems on passenger coaches.

• $A 124m towards delivering integrated electronic ticketing for ferries, trains, buses and light rail across the greater Sydney region. The Opal card will begin to be rolled out on ferries at the end of the year.

• $A 84.5m to progress the Northern Sydney Freight Corridor Program to improve the capacity and reliability of freight trains travelling on the Main North Line between North Strathfield and Broadmeadow plus a further $A 9.86m to contribute to work on the Southern Sydney Freight Line.

• $A 95m for infrastructure upgrades supporting the rollout of the new Waratah emus.

• More than $A 114m on the Clearways Programme to improve on-time running and capacity on the CityRail network. Funding in this year's budget will allow work to continue on the Liverpool turnback programme and the Kingsgrove to Revesby four-tracking.

• $A 32m towards the purchase of 99 new outer suburban Oscar emu cars for the Central Coast, Blue Mountains and the Illawarra lines.

• $A 182m for the Country Regional Network, including $A 117 million for network maintenance, $A 43 million for new sleepers and $A 3.2 million to renew bridges.