NSW economy 'is going gangbusters': govt

The NSW treasurer has foreshadowed a state budget focused on infrastructure and services, after new figures showed the state outpacing the nation in economic growth.

National economic growth was a better-than-expected 1.1 per cent in the first three months of the year, for an annual rate of 3.5 per cent, the Australian Bureau of Statistics reported on Wednesday.

But in NSW the numbers were even stronger. Its March quarter growth came in at 2.4 per cent, taking the year-on-year figure to 4.7 per cent.

"NSW is going gangbusters," Treasurer Andrew Constance told reporters in Sydney, adding the government's focus on jobs and housing was paying dividends.

"The economy is growing three times quicker in NSW than in any other state.

"The renewed confidence that the people of NSW have in their own workplaces, their own businesses, and of course working alongside government, means that we're getting the results."

Mr Constance said his first budget as treasurer, which will be delivered on June 17, would be "very strong".

The next state election is in March 2015.

However, Mr Constance criticised the federal government's "abysmal" decision to walk away from commitments on pensioner concessions, although he would not immediately commit the state to meeting any funding shortfalls.

"I'll be ensuring that we deliver a budget investing in infrastructure, continuing to invest in quality services and also, of course, protecting the vulnerable across our community," he said.

"I am considering what to do with concessions, recognising the cost-of-living pressures that seniors are facing across NSW.

"But the observation I would make is that if you cannot control your budget, it means you cannot invest in some of those vital services and supports that people need."

The ABS figures show only the Northern Territory outperformed NSW in year-on-year terms, with economic growth of 8.2 per cent.