Giving Victorians a public holiday the day before the AFL grand final will inject money into the state's economy, the opposition says.
But the government says shutting business down for an extra day would cost Victoria $1.6 billion in lost productivity and added costs.
Opposition Leader Daniel Andrews has promised a public holiday on the eve of the grand final each year if Labor wins the November 29 state election.
"One of the sporting capital's biggest events deserves more than an ordinary Saturday," Mr Andrews said on Friday.
He said the grand final injected $40 million into the Victorian economy.
There are no long weekends on the Victorian working calendar from the Queen's birthday in June until Christmas in December.
Treasurer Michael O'Brien said an extra public holiday would cost $1.6 billion in lost productivity, including $201 million in extra penalty rates.
"Retail and hospitality businesses will face paying double-time-and-a-half penalty rates or closing down for the day," Mr O'Brien said.
But shadow Attorney-General Martin Pakula said public holidays got people out and spending money.
"There are public holidays throughout the year. Cafes, shops and restaurants all stay open, sometimes they charge a little surcharge on their bill," Mr Pakula told reporters.
There was a Melbourne Show Day holiday in the last week of September, leading up to the grand final but it was axed by then premier Jeff Kennett in 1994.
Mr Kennett said he got rid of the holiday to push Victoria's economy as it came out of the recession.
"We had to rebuild the state's economy and that meant all of us had to wear a bit of pain, and all of us had to contribute," Mr Kennett told Fairfax radio on Friday.
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