$20 million is being provided by the federal government to extend two years of financial counselling services in rural Queensland and western New South Wales communities affected by drought, according to a statement by deputy Prime Minister Michael McCormack.

Agriculture minister David Littleproud announced the measure in Charleville along with a $2 million commitment to increase mental health services funding provided by tele-health organisations.

The announcement comes after the Prime Minister and several ministers visited regional Queensland last week to discuss worsening drought conditions.