But Queensland Treasurer David Janetzki is adamant there will be no changes, vowing to provide cost-of-living relief while keeping the Brisbane Games on track.
The Liberal National government will hand down its second budget on Tuesday, insisting it will avoid tax increases and keep debt in check despite rising Olympic spending.
It has accused the Labor opposition of launching a scare campaign ahead of the budget after it claimed public servants on temporary contracts would be out of work at the end of the financial year.
Opposition Leader Steven Miles said there had been reports from across the public service that temporary contracts would be torn up to slash costs.
"In many cases, these are workers who have been in those roles for many, many years ... had their temporary contracts rolled over repeatedly and are now being terminated," he told reporters on Monday.
It sparked comparisons with Queensland's last LNP government, led by Campbell Newman, which sacked 14,000 public servants as part of the 2012 budget.
But Mr Janetzki ruled out job cuts, promising to provide a budget that would help shape the state's future in the 2032 Games countdown.
"This year's budget is going to build on the foundations that we laid last year - it's important that we get the balance right," he said.
"We are funding that permanent and recurrent cost-of-living relief for those who need it most."
The government has already confirmed a record $119.2 billion infrastructure program over four years, including $55.9 billion for transport and main roads.
There is not expected to be any change to previously announced Olympic spending in the budget.
Some $145.5 million was allocated to Olympic infrastructure for the current financial year, a cost due to swell to $1.7 billion over four years.
The state's debt is expected to reach a record $205 billion by 2028/29.
Queensland's AA+ credit rating was downgraded for the first time in 15 years when its outlook went from stable to negative in February 2025.
The government was warned there was potential for further reduction if the budget was not balanced within two years.
Another rating downgrade would likely lead to higher borrowing costs for the state in the race to complete 2032 projects.
Coal royalties were set to provide some relief due to current elevated prices but it was a volatile source of income, University of Queensland Business School professor Shaun Bond said.
Property-related revenue was also expected to be much leaner with stamp duty likely to weaken as the housing market slowed, he said.
An independent economic think tank said only about a third of Queensland's capital program was being funded from cash flow, meaning it was borrowing heavily to build at a time when interest costs were rising.
"Spending levels are excessively high, its income swings wildly depending on what coal prices are doing and it now has to build an enormous amount of infrastructure for the 2032 Olympics," e61 Institute chief executive Michael Brennan said.
There has been some relief flagged for Queenslanders with electricity prices for regional households expected to fall 6.9 per cent from July and 8.1 per cent for small businesses.
Water bills in southeast Queensland will also be frozen, saving the average household about $130 over two years.
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