MYEFO 'underwhelming': Vic treasurer

Victoria has criticised the federal government's "underwhelming" financial performance and says if Australia's triple-A credit rating is downgraded it could impact the state.

"Essentially what the Commonwealth has demonstrated is they continue to struggle with issues associated with debt and deficit management," Victorian Treasurer Tim Pallas told reporters on Monday.

Mr Pallas acknowledged the federal budget deficit had improved slightly for this financial year, but slammed a drop in infrastructure entitlements to Victoria.

"The Commonwealth sooner or later needs to recognise that they have a national responsibility to assist Victoria in building the infrastructure," he said.

With speculation the federal triple-A credit rating could be downgraded, Mr Pallas said history showed few sub-sovereign jurisdictions maintained higher ratings after a national drop.

"We're in a strong position, we've done nothing but improve our standing around the triple-A but as a consequence of the Commonwealth's rating being under review the states will find it increasingly difficult, were something adverse to occur, to preserve our status," he said.