NSW Treasurer Dominic Perrottet has handed down the state budget in parliament, announcing a surplus of $3.9 billion.

In the last state budget before next year’s election, the NSW Government is focusing on families and cost of living pressures.

Families will receive creative rebates for their children, with parents being able to use a $100 voucher to help pay for music lessons, language classes and coding from January 1 next year.

The Treasurer tells Ross Greenwood the budget aims to “put more money back into the pockets of families across the state”.

“Middle Australia is the engine room of our economy and they’re making a significant contribution [and] cost of living is an issue.

“It’s not the government’s money, it’s the taxpayers’ and we want to give it back.

“That’s why this budget doesn’t just build infrastructure of the future, but delivers to people today.”

The government has also unveiled a $3-billion New South Wales Generations Fund. Half of the interest earned in the fund will be invested in local projects, with the other half used to pay off the state’s debt.

Families with pre-school aged children will see savings of around $825 a year, with subsidies being extended to three-year-olds.

The NSW Government has maintained their infrastructure spending, allocating $3 billion to fund an ambitious high-speed rail connecting the CBD to Parramatta in a bid to slash travel time to 20 minutes.

Mr Perrottet says the investments are to ensure Sydney doesn’t get stuck playing “catch up” as the capital city grows.

Although the surplus for 2017/18 has exceeded forecasts to the tune of $600 million, it’s expected to fall in the 2018/19 period.

Listen to the full interview below