The last-minute announcement is part of the final tranche of budget pledges totalling more than $30 billion, and paves the way for next year's state election.

AAP also understands $440 million will be committed over one year for five integrity agencies: ICAC, the NSW Audit Office, the Law Enforcement Conduct Commission, the NSW Electoral Commission, and the NSW Ombudsman Office.

Tuesday's budget is the first for Treasurer Matt Kean, who took over the portfolio when Dominic Perrottet became premier in October.

The premier and treasurer have made it clear they are pursuing a reform agenda with a strong focus on policies to support families, women, health, the environment and housing.

Health Secretary Susan Pearce said while there was always a small number of overdue surgical patients, successive Omicron and Delta outbreaks had led to the backlog of patients blowing out to about 18,000.

NSW Health was doing everything it could to recruit new staff into the system, she said on Monday.

Health Minister Brad Hazzard said $408 million has been allocated in the budget to clear the backlog.

The funding will go towards employing 267 full-time equivalent staff and allowing operating theatres to open at some hospitals on weekends and evenings.

Mr Kean said the funding would ensure people could get elective surgery when they needed it.

"Our health system has served us so well during the pandemic," he said.

"And just like with boosting the budget, we're also boosting our frontline health services during this budget."

Meanwhile, the government has committed some $500 million towards releasing land and building the necessary infrastructure in new developments as part of an ambitious bid to address housing affordability.

Mr Perrottet is making a concerted bid to address a housing shortage in the budget.

The premier says he is dedicated to addressing affordability and infrastructure issues around housing and has pledged $300 million towards building council infrastructure including roads, sewers, power and parks.

"This is about getting keys in doors with this commitment supercharging housing supply to help people across the state get one step closer to home ownership," Mr Perrottet said.

"This investment will help give people more choice and deliver a brighter future for NSW families."

The budget spend comes a day after he announced a $780.4 million shared equity housing scheme for frontline workers, single parents and single people over 50, who often struggle to buy a home.

Homes Minister Anthony Roberts said a key recommendation of the Regional Housing Taskforce was to address a lack of infrastructure in regional communities.

"This investment will help regional NSW keep up with current and future demand," he said.

"It's important that industry receives the certainty they need to deliver housing supply for our growing population both in Sydney and in our regions."

Shadow Treasurer Daniel Mookhey said the premier and treasurer had committed $37 billion in spending before budget day, and taxpayers should brace for higher taxes.

"This cash splash is by far the biggest in NSW history," Mr Mookhey said.

"Dominic Perrottet and Matt Kean have announced more in spending than Scott Morrison and Anthony Albanese took to the federal election."

It was not possible to load the budget with so much structural spending and not expect taxes to rise in the near future, he said.

Australian Associated Press