Costings umpire to depart after policy pricing row

The chief of Victoria's independent election costing body will leave his post after drawing the state government's ire.

Anthony Close has been informed by the Labor-majority Public Accounts and Estimates Committee that his contract as parliamentary budget officer won't be renewed.

The Parliamentary Budget Office was established by the Andrews government in 2017 to prepare election policy costings, pre-election and post-election reports, and provide advice to MPs on financial, fiscal or economic matters.

Mr Close was appointed to run the office for five years in April 2018 after previously serving as Queensland's acting auditor-general.

Despite the office becoming operational before the 2018 state poll, the government has continued to use the Department of Treasury and Finance to run the numbers on its financial-related election pledges.

In a report tabled last month, the PBO recommended it be the sole election costing provider to all political parties, to better allow voters to compare policy costings.

Premier Daniel Andrews said it was "absolutely ridiculous" for the office to "cast aspersions" about the department.

"It's not for anyone to call into question the objectivity or the appropriateness of the Department of Treasury and Finance," he told reporters on March 8.

The PBO also made headlines before last year's state election after costing construction for the first two stages Labor's Suburban Rail Loop at $125 billion, more than twice the government's initial $50b estimate for the entire project.

The independent analysis was put together at the request of then opposition leader Matthew Guy, and Mr Andrews denied under-costing the proposed 90 kilometre orbital train line from Cheltenham to Werribee.

Shadow special minister of state David Davis said the "sacking" showed the government would go to any length to silence its critics.

"The premier must explain why he has backflipped on Mr Close's position just months after he exposed serious financial mismanagement within the government," he said.

Victorian Greens leader Samantha Ratnam also criticised the move and said Mr Close had demonstrated a high level of professionalism and a commitment to the office's independence.

"The government has on numerous occasions shown its displeasure at the scrutiny the PBO has placed on them," she said.

"It is very concerning to see the head of an independent body pushed out by a Labor government seeking to avoid scrutiny."

Under the PBO Act, the treasurer must advise the governor about who to appoint to the role based on the recommendation of a parliamentary committee.

"This is a matter for the Public Accounts and Estimates Committee," a government spokesman said in a statement.

Treasurer Tim Pallas will hand down his ninth state budget on May 23.