The NSW treasurer will deliver his first full budget in September as he warns of significant challenges, including major projects that have blown out by billions.
Premier Chris Minns last week announced an independent review into both Sydney Metro projects after saying they had been plagued by cost overruns.
The Sydney Metro West line is expected to exceed $25 billion, after an initial costing of $18 billion, while the City and Southwest Metro project will cost nearly two billion more than the Coalition's publicly announced $18.5 billion price-tag, according to internal government documents.
Treasurer Daniel Mookhey said there were other projects such as Cyber Security NSW that had no allotted funding.
Mr Mookhey will also announce the "significant economic challenges," he claims his government has inherited, including "the largest debt in our state's history".
"We have high inflation, higher interest rates, historic debt, and this is about painting a full and honest picture of what is really going on," he said.
"These challenges can't be fixed overnight, it will take time and there will be tough choices."
NSW Finance Minister Courtney Houssos said the government had a lot of work ahead of them.
"There's also a range of programs across government that are unfunded beyond a short time frame, some of which have been publicly outlined in recent weeks," she said.
"The treasurer and I will work through those over the coming weeks and months, but we're being up-front and honest with the people of New South Wales about the pressures we are inheriting."
It comes after a recount of the state election votes cast in the north-west Sydney seat of Ryde reconfirmed the Liberal party had won.
According to the NSW Electoral Commission's final tally, the Liberals' Jordan Lane increased his lead from 50 votes to 54, after six informal votes were found to be formal.
Mr Lane edged just above Labor's Lyndal Howison, who called for the recount due to the close result.
Labor's final seat tally remains at 45, with the Coalition winning 36 seats, the Greens three and independent candidates claiming nine seats.
The Electoral Commission said if Labor wanted to again dispute the numbers, it would have to be via a petition to the Court of Disputed Returns.
