For the third year in a row, Labor has pledged to introduce a new public holiday for the AFL grand final, reigniting criticism from the Coalition.

The Napthine government has slammed the proposal, saying it could slash up to $1.6 billion from the Victorian economy every year in lost productivity and increased business costs.

But opposition leader Daniel Andrews said Labor's plan for a new holiday on the Friday before the big game would benefit tourism, families and AFL fans.

He said there was a six month long weekend drought between the Queen's Birthday in June and Christmas, and Victorians deserved a break.

"One of the sporting capital's biggest events deserves more than an ordinary Saturday," Mr Andrews said.

Treasurer Michael O'Brien labelled Labor's election pledge "reckless", saying it would hurt small to medium sized retail and hospitality businesses.

It would cost the retail and hospitality industry about $201 million in penalty rates, he claimed.

"Retail and hospitality businesses will face paying 'double time and a half' penalty rates or closing down for the day. Either way, Daniel Andrews would cost Victoria jobs," Mr O'Brien said.