Planning for the $80 million project - which could take up to two years - can now begin, with planning funding to be released next financial year, under the 2019-20 state budget, announced by NSW Treasurer Dominic Perrotte on Tuesday, June 18.

Northern Tablelands MP Adam Marshall said this is an historic time for health facilities in the Northern Tablelands, as planning funding has also been allocated for the $20 million upgrade of Glen Innes Hospital.

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"This is the first time Moree and Glen Innes Hospitals have appeared in the budget papers and now these redevelopment and upgrade projects are locked in," he said.

"I couldn't be happier or more proud today for the Moree and Glen Innes communities - they will get the new health facilities they need and deserve because they worked together.

"Those communities deserve the credit for this outstanding result and now it's my job to continue working with them and NSW Health to ensure planning gets underway soon and these projects deliver for our region."

Mr Marshall said the redevelopment of Moree Hospital will mean local residents could receive top-class medical treatment in their own home town.

"There's no doubt that new and upgraded hospitals help dramatically in attracting and retaining quality medical staff, but it's the local patients who will notice the most difference and that's what these projects are all about - local people," he said.

Moree mayor Katrina Humphries said it's fabulous to know the hospital redevelopment is now locked in.

"Now it gets really exciting," she said.

The hospital funding allocation wasn't the only big budget win for Moree, with a number of previously-announced projects being funded in the next financial year.

The $50.29 million construction of the Newell Highway heavy duty pavement upgrade between Mungle Back Creek and Boggabilla has been allocated as part of the 2019-20 budget, while the $10.46 million to seal Carrigan Road from Mungindi to Boomi has also been set aside. Additionally, more than $8 million for Newell Highway upgrades will be funded and $10.93 million is going to local councils for road maintenance.

READ MORE: Safer and more efficient Newell on the way

More than $4 million is budgeted for new and upgraded social housing in Moree and Boggabilla and the new Service NSW Centre will be built in Balo Street.

Also included in the budget is $280,000 for Moree Truck Wash and $14.8 million in Water Security for Regions funding for the Northern Tablelands, which includes water supply projects at Biniguy, Ashley, Moree and Bundarra.

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Cr Humphries said it's great to see these projects happening, especially at a time when the community is feeling the pinch of the drought.

"It's absolutely vital that when the chips are down, like they are at the moment, to keep the wheels turning," Cr Humphries said.

"That's what this budget does, with industry development, it keeps the wheels going around. It's very important that there's still opportunities in the bush to make ends meet.

"That's why it's so important we see Inland Rail starting up. People who usually work on-farm might be able to pick up employment on the Inland Rail."

This year's budget has been declared "one for the bush" by Mr Perrottet, with the government setting aside $800 million in drought assistance for regional NSW.

As part of the $800 million, the government will spend $350 million topping up its farm innovation fund, which includes low interest loans to improve drought resilience.

Another $70 million will be dedicated to transport rebates for fodder, stock and water, while $170 million has been reserved for a drought infrastructure package to improve water security in several regional towns.

The government will also spend $113 million upgrading Keepit Dam, which has a water level of just one per cent.

Cr Humphries said it was fantastic to see so much extra money going towards supporting our drought-affected farmers.

"The whole process of applying for funding will be made simpler and there's a lot of things to make life a little easier for our farmers," she said.

"I congratulate the state government on remembering the bush."

All up, a record $304.3 million has been allocated in this budget for projects in the Northern Tablelands.

$304 million is a staggering amount and the Northern Tablelands deserves every cent," Mr Marshall said.

"It is our time to grow and thrive and I can't wait to see the avalanche of new projects we can start thanks to this record funding.

"The Northern Tablelands is a vital driver of the state's cultural and economic landscape. This record $304 million budget will help move our region forward - and I'll ensure we keep that momentum going across the next 12 months."