The Victorian government has defended the $50 million cost to taxpayers of staging the Australian Formula One Grand Prix.

An independent economic impact report has found that overall, the 2011 Grand Prix increased Victoria's gross state product by between $32 million and $39 million.

However, the government subsidised the event by more than $50 million.

Tourism and Major Events Minister Louise Asher said despite what is an overall loss to the state, there are other benefits from the event which need to be taken into account.