The Labor government will go on a "massive infrastructure spend", including fully funding the Cross River Rail project.

The state government will dedicate $21 billion towards investment of road and transport infrastructure over the next four years, and the Queensland Transport and Roads Investment Program would boost the state's transport future and job creation.

"In the 2017-18 financial year, we will invest $4.32 billion to continue the great work across the state and ensure we have the infrastructure to address the needs of our growing state," Transport Minister Jackie Trad said.

The Transport Service Contract with Queensland Rail will receive $25 million in 2017-18 to be used to offset costs associated with the implementation of the Strachan Commission of Inquiry recommendations.

A total of $211.1 million will be spent over four years from 2017-18 to supplement the provision of rail transport services, while $105 million has been allocated this financial year to restore the state's transport network after ex-tropical Cyclone Debbie ripped across Queensland earlier this year.

Premier Annastacia Palaszczuk has also announced the $5.4 billion Cross River Rail project will be fully funded.

The majority of funding for the government's highest infrastructure priority will kick off after the election, with $20 million dedicated towards continuing preliminary work on the project.

The budget has allocated $2.8 billion over the forward estimates, with a further $2.6 billion to be committed in future budgets, the Premier said.

"The importance of Cross River Rail for the future of south-east Queensland is unquestionable - industry experts and the community agree that we need this project and we need it now," Palaszczuk said.

"That is why my government is fully funding the $5.4 billion Cross River Rail project."

Palaszczuk said construction would start on the project this year, adding that the Cross River Rail Delivery Authority would continue to look at options to partner with the private sector.

Meanwhile, the Works for Queensland program, which supports local governments outside south-east Queensland will receive an additional funding of $400 million over three years, which kicked off last year.

Local governments will also receive $10 million in 2017-18 to help with strategic infrastructure planning.

Minister for Infrastructure and Planning Jackie Trad said the Works for Queensland program had already seen 723 council projects, including parks, playgrounds and renewable energy initiatives, approved.

"This funding is making a real difference to the lives of Queenslanders and to their communities right across the state," he said.

Master Builders welcomed the state government's budget initiatives but cautioned that more work needed to be done to ensure a consistent and well-managed pipeline of building projects for Queensland.

While $10.2 billion has been allocated to capital works, a large chunk of this has been shaved off for the Cross River Rail. That still leaves a good sprinkling of spending on schools, health facilities, and other projects including the Cairns Convention Centre and the Townsville stadium.

Master Builders deputy CEO Paul Bidwell questioned why the government allocated money but consistently underspent by an average of $1.7 billion annually for the past six years.

"The government needs to ensure it spends all of the money it's allocated, as well as show that it is prepared to pursue new opportunities to unlock investment," Bidwell said.

Major projects at a glance:

  • $42.75 billion capital works spend over four years, up $2 billion from the last budget. That includes a $10 billion program in 2017-18.
  • Extra $1.95 billion over forward estimates for Cross River Rail, in addition to the $850 million already funded in previous budgets, so works can start as early as the end of this year.
  • $225 million over four years from 2017-18 to secure water security for Townsville.
  • $200 million to improve the safety of the Burdekin Falls Dam, the improvement works will support the proposed hydro-electric power station.
  • $75 million down payment on the Townsville port expansion, subject to final environmental impact statement.
  • $150 million reinvestment of Powerlink dividends for the development of strategic transmission infrastructure to support a clean energy hub.