Premier Campbell Newman says Queensland has 20,000 more public servants than it can afford.

Mr Newman has put a figure on how many jobs could go in a massive State Government cost-cutting exercise.

It follows the release of a commission of audit last week which forecast a blowout in state debt to more than $90 billion in four years.

The audit - headed by former federal treasurer Peter Costello - suggested increased tax and charges as well as public sector job cuts to return the budget to surplus.

Mr Newman has told Parliament the previous government relied on borrowings to pay public service wages.

"Labor has employed 20,000 more public servants than the people of Queensland can currently afford," Mr Newman said.

"Labor was paying those 20,000 public servants by borrowing, by incurring debt, by borrowing to keep the lights on as well.

"I've had the guts - I might add - to come in here and tell the truth."

Opposition Leader Annastacia Palaszcuk says new government figures on temporary contracts and casual workers show even more jobs are under threat.

"55,000 jobs are clearly at risk under this new government," Ms Palaszcuk said.

Deputy Premier Jeff Seeney says severe cutbacks in Government spending are required.

However, he says those cutbacks will only be one side of the Government's response.

"Our government will redouble our efforts to boost the income of the state by growing the four economic pillars," Mr Seeney said.

The Government is also negotiating a new pay deal with public servants, offering 2.3 per cent annual pay rises.