Victoria is considering ramping up borrowing to pay for future infrastructure, with Treasurer Tim Pallas promising to throw out the "populist" political rule book decrying debt.

In a speech to Sydney's McKell​ Institute signalling departure from past practice, Mr Pallas also said the previous government's efforts to limit spending growth to 2.5 per cent a year led to an "unsustainable" erosion of services when compared with population growth and inflation.

Victorian Treasurer Tim Pallas: "I am throwing out the political play book." Credit:Josh Robenstone

Instead, Victoria will adopt a more expansionary target of 3 per cent spending growth - which is still below expected revenue growth.

Although Mr Pallas promised to maintain a buffer of budget surpluses and protect Victoria's AAA credit rating, he said at a time of record-low interest rates it would be irresponsible not to consider increasing borrowing to boost the economy.