Light rail for Sydney's West: NSW budget

The NSW government is setting aside $400 million to progress plans for a light rail network in Parramatta.

NSW Premier Mike Baird on Tuesday said the money will be allocated from the state government's infrastructure recycling fund, Restart NSW, as part of the 2014/2015 budget.

"Today's major commitment for Western Sydney could provide a key missing transport link and change the way people travel in and around Sydney's west," he said.

Treasurer Andrew Constance said the money has been set aside to ensure construction is ready to go following feasibility studies.

Construction for an already announced $1.6 billion light rail network between the Sydney CBD and South East Sydney will get underway next year,Transport Minister Gladys Berejiklian said.

The budget also includes $863 million for construction of the North West rail link, with the first tunnel boring machines expected to be in the ground be October.