NSW delivers a budget surplus of $4.5 billion, net debt is the best result since 1997

New South Wales Treasurer Dominic Perrottet (R) showin US vice president Mike Pence and his wife Karen around Sydney harbour. Photo: Peter Parks-Pool/ Getty Images.

The New South Wales government has delivered a budget surplus of $4.5 billion for 2016-17.

Treasurer Dominic Perrottet is set to announce the surplus when he delivers his first budget on Tuesday.

The budget result will likely be attributed to the privatisation of some state assets, including the partial privatisation of electricity “poles and wires” company Ausgrid, higher investment returns and tight expenses control.

The state’s net debt is the best result since records began in 1997.

The result means NSW is now on track to be the first state with a net worth of a quarter of a trillion dollars.

“This budget realises the rewards of our poles and wires reforms and invests them back into our local communities with record investments in social infrastructure,” Perrottet said, adding that the government is “delivering exactly what we promised we would”.

“Our strong financial and economic management means we can meet the needs of today while building for the future,” he said.

As part of the new budget, the government has announced $4.2 billion over the forward estimates for education infrastructure, $1.2 billion towards housing affordability measures, including abolishing stamp duty for first homebuyers on existing and new homes up to $650,000, and $244 million to build the Art Gallery of NSW’s new “Sydney Modern Project”.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.