THE Queensland Government has accused the Federal Government of letting the saturated state down on flood funding.

Queensland Community Recovery and Resilience Minister David Crisafulli said the federal government had today announced less than half the money Queensland needed to get back on its feet after the floods.

The Federal Government today committed $85 million to flood relief and recovery - $40 million for a betterment fund and $45 for a Queensland Support package.

This was on top $120 million already delivered.

Mr Crisafulli said he'd asked the Federal Government to match the $140 million for flood security and resilience as a minimum to help recover.

"The large portion of that money, $100 million, would have been spent on betterment or improving infrastructure, with $40 million to go to mitigation,'' Mr Crisafulli said.

"Combined with our funds, that would have given us $280 million total, but instead the federal government's big flood announcement was only $57 million.

"At the same time, Julia Gillard announced $50 million for just one dam in Western Sydney.''

But the Federal Government hit back saying the state government had demanded more money to fix state roads.

Minister Assisting on Queensland Floods Recovery, Senator Joe Ludwig, said state governments should self-fund improvements to their own infrastructure or continue to use betterment arrangements, available since 2007, to repair state assets.

"This fund is targeted at local councils who need it the most. It is not about pumping millions to a state government to do their own job,'' Mr Ludwig said.

"Anyone who knows the abilities of massive state departments compared to those of regional councils knows that would have meant millions of dollars flowing straight to state roads without any support to local roads.

"Places like the Lockyer Valley, Bundaberg and the Burnett would not have seen a dollar if the state government had their way.

"It's now up to the state government to decide - do they want to line their own pockets, or do they want to build back local roads stronger?''

Mr Ludwig said this was the first time a Federal Government had ever made such a significant contribution to bettering local roads.

"Instead of going through the usual application process, councils will now be able to go straight to the QRA for money from the fund for betterment projects,'' Mr Ludwig said.

"What the state government won’t tell you is that they had insisted on making the fund available for both state assets and local council assets.

"That is something we did not agree with.''