Premier Campbell Newman says Queensland is on the verge of bankruptcy and had been in danger of becoming "the Spain of Australian states".

Mr Newman made the comments in Canberra ahead of tomorrow's COAG meeting.

He says the state's finances are still in disarray due to reckless financial management by the previous Labor government.

"Even if magically there were 20,000 fewer public servants tomorrow out of 204,000, we would still have a budget deficit of over $1 billion," Mr Newman said.

"Queensland has been bankrupted - is on the way to being bankrupted - by poor and reckless financial management."

Mr Newman has committed to run a trial of the National Disability Insurance Scheme (NDIS) in Gympie, a town in the state's south east.

However he says the state cannot afford to contribute funds for the NDIS and the Federal Government will have to pay for it.

He says his government is taking action to turn Queensland's finances around.

"I'm saying that if we'd failed to act in the way that we are that Queensland would ultimately be the Spain of Australian states," Mr Newman said.

"But that's not going to happen because we're taking tough, decisive action."

About 3,000 public service jobs have already been axed by the Newman Government.