Treasurer Curtis Pitt handed down his third budget on Tuesday - his last before the state election, due to be held by May next year.

While a volatile coal market delivered high prices and generous royalties in this financial year, the budget's bottom line will take a hit in 2017-18 from Cyclone Debbie.

But that has not stopped the Palaszczuk government from announcing big ticket items, such as Cross River Rail, spruiking a "jobs bonanza" theme, and still managing to predict a surplus.

Premier Annastacia Palaszczuk said it was a jobs budget for battlers, builders and Queenslanders, with 40,000 jobs predicted for 2017-18.

There have been 60,000 net new jobs since the 2015 election.

The forecast surplus in the coming 2017-18 financial year is expected to be dramatically reduced to $146 million, with Cyclone Debbie taking the blame.

The cyclone is expected to shave about $2 billion, or 0.75 per cent, from economic growth over the next financial year and next.

Coal, sugar, cattle, other exports and tourism were impacted as a result of the cyclone.

The estimated cost to the government of recovery activities from Cyclone Debbie is $1.1 billion.

There is a predicted net operating surplus of $2.82 billion in 2016-17 - the biggest surplus in a decade - and higher than that forecast in December's Mid-Year Fiscal and Economic Review of $2 billion.

The $2.82 billion surplus is attributed to temporary factors, such as the timing of disaster recovery reimbursements for events prior to Cyclone Debbie and strong royalty revenue as a result of highly volatile coal prices in the past year.

It is a large increase on the $867 million 2016-17 surplus predicted in last year's budget.

In 2017-18, general government sector debt is expected to be more than $14 billion lower than forecast in the 2014-15 budget, at $33.76 billion.

Non-financial public sector debt, which includes government-owned businesses, is forecast to be $71.99 billion in 2017-18.

The total debt is forecast to increase and hit $81 billion by 2020-21.

"We have not given up on the total debt - far from it," Mr Pitt said.

"It's very important that our expenses line is lower than our revenue line."

Mr Pitt said the debt-to-revenue ratio was 60 per cent for 2016-17 and 2017-18, down from 91 per cent in 2012-13.

Total general government sector expenses are expected to be $55.7 billion in 2017-18, an increase of $2.11 billion (3.9 per cent) over the 2016-17 estimated actual.

It was attributed to the cost of the Commonwealth Games, an increase in education costs as a result of more students and EBA outcomes, more funding for Queensland Health, jobs programs, the NDIS and justice reforms, such as moving 17-year-olds to juvenile prisons.

Expenses growth will average 3.2 per cent a year in line with revenue growth in last year's budget, prior to Cyclone Debbie.

"It would be irresponsible, not just socially but economically, to slash funding for reconstruction and frontline services every time a natural disaster impacts on revenue," Mr Pitt said.

Total revenue is expected to grow at an average annual rate of 3 per cent over the forward estimates, with the revenue outlook "challenging", as it will be affected by reductions in interest income and revenue from government-owned corporations.

Overall growth in the Queensland economy is forecast to strengthen, from the 2.4 per cent recorded in 2015-16 to 2.75 per cent in 2016-17 and 2017-2018, before improving to 3 per cent in 2018-19.

There is a $42.75 billion capital works program over four years - an increase of more than $2 billion compared to the last budget.

Mr Pitt unveiled a $1.95 billion commitment over the forward estimates to Cross River Rail, in addition to $850 million already funded in previous budgets.

It brings the total funding for the project to $2.81 billion over four years.

While the Palaszczuk government has been lobbying the federal government to stump up cash for the $5.4 billion project, Mr Pitt said he could confirm Queensland would fully fund the "state's highest priority infrastructure project".

However, he said it was not too late for the federal government to make a contribution.

Ms Palaszczuk said Queensland would be sending Prime Minister Malcolm Turnbull the bill for Cross River Rail.

"I am sick of having to go down to Canberra, begging for money," she said.

But the majority of the new money for Cross River Rail is budgeted for years down the track - and after the state election.

The government has committed $62 million from 2018-19, $1.06 billion from 2019-20 and $829 million in 2020-21.

There is also an extra $20 million in 2017-18 for the Cross River Rail Delivery Authority.

Deputy Premier Jackie Trad said over the next 12 to 18 months' work would include talking to industry, tendering and procuring, with the height of construction in about two years.

Following moves in the federal budget and Victoria, the Queensland government will introduce a 1.5 per cent land tax surcharge on absentee land taxpayers - foreign landowners - if the value of their taxable land is $350,000 or higher.

The measure will increase government revenue by $20 million a year from 2017-18.

Treasury will also continue its policy of taking money from government-owned corporation profits and the defined superannuation benefits scheme, which is then available to the government to fund infrastructure or reduce debt.

There will be $4 billion withdrawn from the defined superannuation benefits scheme over three years, from 2017-18.

The cash surpluses will still be there for the government-owneed corporations - electricity and water network businesses - if they need it, but it can offset general government debt.

There is also plenty of love for the regions, where Labor will hope to stave off the influence of Pauline Hanson's One Nation.

Regional Queensland will not miss out on infrastructure spending, with $4.8 billion to be invested in Mackay, the outback, far north Queensland, central Queensland, Wide Bay, the Darling Downs and Townsville, with a promise of 14,500 jobs.

But Mr Pitt denied the government was pork barrelling in marginal Labor electorates.

"Are there local Labor members of Parliament up there, absolutely, but these centres, these main provincial centres in Queensland that require the kind of funding arrangements that we've put in place in the budget," he said.

Mr Pitt said it was an important budget, not only because it was the last budget before the election, but because it was about "continuing momentum".

Growth in the public service has blown out, despite a promise in 2016 to keep increases in the public sector in line with population growth.

Population growth will track at 1.5 per cent and growth in public sector full time employees will be at 1.7 per cent on average over the forward estimates.

In the next financial year, the public service is predicted to moderate and increase by 2.8 per cent, or 6000 employees - with employee costs at $22.42 billion.

In 2016-17, growth in the public sector growth was expected to be 3 per cent.

But Mr Pitt said since March 2015, almost 90 per cent of the growth in government workers was in frontline services such as health, education and police.

Mr Pitt said growth in the public service was 3.7 per cent in the LNP's last budget in 2014-15.

It comes after an Audit Office report warned of "significant financial risk" due to an increase in the number of highly paid public servants in recent years.

Departments have been asked to find $175 million in savings over the forward estimates - much less than the $450 million the previous year - particularly from Education and then Transport and Main Roads, in a measure it calls "reprioritisation".

The first home owners' grant was due to finish at the end of June, but an extra $30 million will extend it December 31, 2017.

The budget will aim to lure people to the Sunshine State, with a Move to Queensland campaign.

There will be $3.8 billion for transport and roads, $604 million for schools facilities and $916 million for health capital works.

Education will get $13.7 billion, with $500 million over five years for new inner-city Brisbane schools.

There will be $27.5 million to expand the Back to Work program to cover south-east Queensland, and encourage employers to take on long-term unemployed or young unemployed jobseekers.

The health budget is due to increase to record funding of $16.6 billion.

The government will also spend $1.5 billion on delivering the Gold Coast Commonwealth Games in 2018.

There is also $1.16 billion for the already-announced Powering Queensland Plan, which aims to lower household bills, $5 billion in concessions to help people with cost of living, and $1.8 billion for a housing strategy.

There will be no new taxes, fees or charges, and the indexation rate of payments such as vehicle registration fees, driver's licences and the fire levy on rates will increase by CPI from 2019-20.

It is expected to save Queenslanders $78 million over two years.

There will also be $199.6 million over four years to transition 17-year-olds from Queensland's adult justice system to the youth justice system.

Will it be the budget to win Labor the election and quash One Nation? That's the billion dollar question.

LNP leader Tim Nicholls will deliver his budget reply speech on Thursday.