NSW Treasurer Eric Roozendaal said the infrastructure program was the largest in the history of the state and was expected to create up to 160,000 jobs a year.

Treasury has forecast the state’s net debt to jump from $29.2 billion to $52.6 billion in June 2013.

While expecting economic recovery next year, the NSW government expects the global financial crisis to shrink revenues by around $10 billion over the four years to the 2011-12 financial year.

“This revenue loss will not be recovered over the next four years and will continue to adversely affect the NSW budget position for some years,” the government said in its budget paper.

To simplify lodgement processes for the mining industry, the government will chip in $1.8 million for a Mineral Resources Business and Technology System that complies with the Mining Amendments Act 2008.

However, NSW Minerals Council chief executive Dr Nikki Williams has called for the state government to take a machete to red tape and make good on its promises to further streamline planning and assessment processes.

“With the mining industry’s operations controlled by more than 570 pieces of legislation and regulation, there is an urgent need to integrate mechanisms for the assessment, approval, monitoring and compliance of mining projects,” Williams said.

The industry group welcomed the $20 million over two years to assist employment opportunities in the Western coal fields and Gunnedah region.

“We welcome the package as recognition of the ‘heavy lifting’ the mining industry does in terms of job creation in those regions,” Williams said.

“However, it does not adequately address the significant impact of the government’s decision to remove transport costs as an allowable deduction, as announced in last November’s mini budget.

“We will continue to advocate for the reinstatement of transport deductions and we will seek a commitment from the Coalition should it be brought into power in 2011.”

Williams praised the $16.5 million slated for the Clean Coal Fund for the next financial year, saying it was recognition that carbon capture and storage technology was critical to reducing emissions and part of the solution to climate change.

Spending measures in the budget include $20 million for the Port of Newcastle, with $10.65 million to finish the redevelopment of BHP Billiton’s former iron ore berth at Mayfield as a major trade facility.

The planned construction of a new Pilot Station Ports Centre will receive $3.2 million of funding, while $2.5 million will be spent on a new Pilot Cutter Vessel.

Kooragang’s No. 3 Berth has been allocated $820,000 to renew its fenders.

Port Kembla will receive $15.71 million to be spent mostly on the outer harbour expansion project, with the first stage reclaiming 8-10 hectares of land.

Within the infrastructure program, a significant amount of funding has been dedicated to roads and transport, including the Hunter Expressway and the Pacific Highway, along with various railway projects.

Some $15.1 billion of the budget is dedicated to health services, $14.7 billion to education, $7.1 billion to transport and $4.4 billion to roads.