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Politics
Phoebe Loomes, Callum Godde, Nick Gibbs and Mibenge Nsenduluka

Budget 'fleeced' NSW again: Perrottet

NSW Premier Dominic Perrottet says the state is penalised for the sum it spends on infrastructure. (Bianca De Marchi/AAP PHOTOS) (AAP)

The NSW premier says he's sick of the state being stiffed on infrastructure support in national budgets after money was stripped from a string of projects.

"NSW always gets fleeced when it comes to federal budget infrastructure funding," Dominic Perrottet told reporters on Wednesday.

The budget was largely applauded in Labor-led states, with premiers praising investments in infrastructure and an agreement to deliver more affordable housing.

But Mr Perrottet stressed his comments about the first Labor budget in a decade weren't politically motivated, adding he had similar views of budgets delivered by the former coalition government.

The Liberal premier said NSW was often penalised because of the amount the state already spent on infrastructure, leading to the view it had little need for federal funds.

"That's not how it should work, NSW should actually be rewarded," he said.

His comments were echoed by state treasurer Matt Kean earlier on Wednesday, who told ABC Radio the country had been "robbed" of funding.

The budget included plans for $8.1 billion in extra federal funding over the next 10 years for rail and infrastructure projects.

However only $1.4 billion, or 17 per cent, of the money was earmarked for NSW, compared to $2.6 billion for Victoria and $2.1 billion for Queensland.

NSW infrastructure projects stripped of funding included $433 million for Dungowan Dam and $75 million for Wakehurst Parkway, while support for a Great Western Highway upgrade was delayed.

The budget also made no provision for the planned 14-metre raising of the Warragamba Dam wall, estimated to cost at least $1.5 billion.

Queensland Premier Annastacia Palaszczuk said the budget was a "very stark contrast" to those delivered under former prime minister Scott Morrison.

She praised investment in child care and paid parental leave and welcomed a funding commitment for Paradise Dam announced by the previous government.

Ms Palaszczuk said there was "more work to do" at national cabinet on health and she will continue to push for a 50-50 funding model with the Commonwealth.

Victorian Premier Daniel Andrews also praised the budget as a good start after "10 years of neglect" under the coalition.

Federal funding for Victoria's controversial Suburban Rail Loop was secured, in line with federal Labor's pre-election commitment.

Victorian Labor is seeking a one-third contribution from the Commonwealth for the first stage of the project, a rail line from Cheltenham to Box Hill worth up to $34.5 billion.

The Albanese government's first budget confirms an initial $2.2 billion for the project but scraps at least $1 billion set aside for other Melbourne transport infrastructure projects approved by the Morrison government.

After warring with Canberra in recent years for Victoria's "fair share" of infrastructure funding, Mr Andrews noted the state's overall share had increased.

"Our percentage of new infrastructure (spending) is significantly up, pushing on a third. But there's a long way to go," he said.

The South Australian government welcomed the budget, which included billions for the state's infrastructure.

Treasurer Stephen Mullighan said it was "undoubtedly good news for South Australia" with extra spending to upgrade road freight routes and remove level crossings.

The budget also maintained a $4.9 billion pledge towards the North-South Corridor of motorways in Adelaide.

Tasmanian Treasurer Michael Ferguson hailed the budget's commitment to funding road projects and other infrastructure, however he criticised the absence of cost of living relief to help with high power bills and fuel prices.

WA Premier Mark McGowan commended the Albanese government for trying to fix the federal budget, which he described as a "mammoth task".

He credited his state and its industries for helping reduce the budget deficit, adding its electricity network and gas reservation policy were the "envy of the country" for keeping WA prices down.

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