Some $1.6 billion has been allocated to expand services and opportunities in regional NSW in the state budget, including $1.3 billion in continued investment in the government's Regional Growth Fund.
The fund has already seen $2 billion worth of funding committed to a total 2700 projects, including major infrastructure, park and swimming pool upgrades, and recreational walks.
Deputy Premier Paul Toole said the fund generated jobs and was transforming the regions with infrastructure upgrades.
"The next phase of the fund will help build on those foundations with new investment in every corner of our regions," Mr Toole said on Tuesday as the state government's 2022/23 budget was handed down.
The budget has also allocated $2.4 billion in regional health spending over ten years to recruit and retain doctors, nurses and other health professionals and provide training and professional development for existing workers.
"Our regions have faced a series of generationally significant challenges, including a historic drought, the Black Summer bushfires and - most recently - COVID-19 and devastating storms and floods," Treasurer Matt Kean said.
"We also believe in the immense capacity of the regional NSW to help our state build a brighter tomorrow."
The government has committed to building more than 270 homes at a cost of $174 million for teachers and police under a $327.7 million investment in regional housing.
The overall funds will be used to fast-track planning, upgrade social housing, build new homes, create new places to stay for workers, and free up government-owned land.
The spending will also be used to tackle wide-ranging construction worker shortages in the regions.
"Developing new housing is complex, and this package will ensure we get the many parts of the system working together, including councils, industry, developers and community housing providers," Mr Toole said.
Mr Kean also said $120 million will be invested in infrastructure in regional areas, which will be key to unlocking new housing project.
The government also plans to spend $130 million setting up a Critical Minerals Activation Fund, which will be used to promote the state and its regions as an investment destination for minerals miners and create "thousands" of jobs.
Mr Toole said the state had an abundance of critical minerals needed to make batteries, electric cars and renewable technology goods.
"This new funding sends a strong message to surveyors, miners and processors that NSW is open for business," he said.
Elsewhere, the budget commits $59 million to regional youth programs - including the appointment of more Youth Community Coordinators, who identify young people needing additional support and help them access services.
It will also fund the continued rollout of the Holiday Break Program, which allows young regional people to access recreation activities during school holidays.
"Young people are key to maintaining vibrant regional communities, and the NSW government is committed to ensuring regional youth have all the tools they need to grow into their best selves," Regional Youth Minister Ben Franklin said.
