The Victorian Government wants to increase the state's debt to fund major infrastructure projects, including the Melbourne Metro rail tunnel.

State Treasurer Tim Pallas said negative attitudes towards debt needed to be thrown out and consideration given to the benefits of borrowing money to pay for long-awaited projects.

"We need to begin a serious and sensible conversation about the role of public debt in meeting our infrastructure needs," he said.

"If we can't have this conversation now, with continued population pressure, with state debt trending down, with the rate of recurrent spending growth below the rate of revenue growth and with the cost of buying at an all time low then we never will.

"I think it's important that we end the populist decrying of debt under all circumstances and recognise that there are important uses that states can put debt to in order to grow intergenerational infrastructure."

He said Victoria's economy was in a strong enough position to cope with more debt.

"The Andrews Government has put aside the funding for about 96 per cent of all its election commitments but we can't simply rest on our laurels," he said.

"If we're about building opportunities for the future, we have to do so much more."

In the most recent credit rating statement issued by Moody's in February, Victoria retained its triple-A rating.

"Victoria's credit quality reflects a long-term historical record of sound financial performance, ample financial flexibility and a diverse economic base that supports its operations," the report said. "The state's general government sector returned to a balanced position in 2013/14, the first time since 2008/09. "Deficits in those years reflected less robust revenue growth, while current and capital spending remained elevated. "The improved financial performance reflects the Government's implementation of a budgetary redress program to return its financial operations to surplus. "The state's debt burden, while remaining manageable, rose sharply, but should stabilise as its improved financial performance is sustained."

Moody's noted that "a loosening in the Government's resolve to maintain budget balance as planned and the associated constraint in debt accumulation could result in downward pressure on the rating".

But Mr Pallas said money could be borrowed without risking Victoria's triple-A economy.

"When you're talking about one-off infrastructure that builds our economy, that supercharges the opportunities that young people will have, that enables us to be able to get to and from work safely and efficiently," he said.

"That has the opportunity to provide not only growth but ensures that our economy continues to grow solidly into the future."