'Walloped': NSW treasurer blames feds for budget strain

NSW coffers will deteriorate by $1.7 billion this financial year, Treasurer Daniel Mookhey says. (Dean Lewins/AAP PHOTOS)

Federal infrastructure cuts, interest rates and inflation have been blamed for blowing NSW's budget out by $1.7 billion in just a few months.

Treasurer Daniel Mookhey delivered the half-yearly budget review on Thursday, saying he would continue to push his federal Labor counterparts to return funding promised for 17 major projects.