Mr Egan spent a decade as treasurer, delivering a succession of surpluses after Labor swept into power in 1995 under Bob Carr, who went on to become the state's longest-serving premier.
Funding the 2000 Sydney Olympics without a dollar of debt was an example of the work of the "great" treasurer, Mr Carr said.
"No one could have been more protective of the public dollar as we cleaved to the ideal of an Olympics without debt," he told ABC Radio on Thursday.
NSW Treasurer Daniel Mookhey lauded Mr Egan for all-but eliminating government debt while investing heavily to improve essential services and infrastructure.
Michael Egan notched up a decade as NSW treasurer. (Mick Tsikas/AAP PHOTOS)
Mr Egan, who represented the seat of Cronulla before moving to the state's upper house, was blamed for forcing the closure of clubs after almost doubling pokie taxes in 2003.
He was also accused of pretending to be the Reserve Bank governor by then prime minister John Howard when introducing a second stamp duty charge on property investors.
"Impatient with theorists and purists, he excelled at producing economic and social reforms through the messy compromise of politics," Mr Mookhey said in a joint statement with Premier Chris Minns.
"He drove changes to make NSW ports, energy, rail and water more competitive, reducing prices for households and businesses, improving living standards and creating jobs."
Changes also resulted in state monopolies being placed into private hands as Mr Egan started the state's 20-year shift towards the privatisation of public assets.
Also taken on by successive Liberal treasurers to help deliver major infrastructure projects, privatisation was later demonised by Labor leaders, putting them at odds with Mr Egan.
"Democracy's a marvellous thing and it's ideal for running a government; it's not ideal for running a commercial business," the former treasurer told MPs in 2015.
After calling time on his 27-year political career in 2005, Mr Egan served as chancellor for Sydney's Macquarie University for 11 years, graduating 43,000 students.
Michael Egan was Macquarie University Chancellor when actress Cate Blanchett received a doctorate. (Dean Lewins/AAP PHOTOS)
He also played a critical role in the career of federal Environment Minister Tanya Plibersek's husband, employing him as an advisor after heroin addiction led to a long jail stint.
Michael Coutts-Trotter's nine years under Mr Egan's wing made possible "extraordinary things" in his life, including helming the state education, justice and treasury departments, he told the ABC.
"I wouldn't have a life in the public service if he wasn't prepared to give me a go and stand by me," the treasury secretary said.
Mr Egan, who had been in hospital for many months with an illness, continued to mentor Mr Coutts-Trotter in his final days.
"I'm terribly sad at his death, but he died on his own terms ... and he showed me how to die with dignity," he said.
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