History created with new state treasurer's appointment

Jaclyn Symes looks on as Premier Jacinta Allan speaks (file image)
Jaclyn Symes is set to become Victoria's treasurer in Premier Jacinta Allan's reshuffled cabinet -AAP Image

Victoria's attorney-general will become the state's first female treasurer in a cabinet reshuffle triggered by the resignation of Tim Pallas.

Jaclyn Symes is expected to take over the role from Mr Pallas, who served for a decade, after a swearing in ceremony on Thursday.

Ms Symes, an upper house MP from Benalla in Victoria's northeast, has served as attorney-general since 2020 and became emergency services minister in 2021.

Her appointment, which has been reported by several media outlets, comes after days of speculation as to who would take over the state's embattled finances.

Tim Pallas has stepped down as Victoria's treasurer after serving in the role for a decade. (Diego Fedele/AAP PHOTOS)

Mr Pallas was Victoria's longest-serving standalone treasurer and the third longest overall, behind dual premier and treasurers Henry Bolte and Albert Dunstan.

His resignation came days after a mid-year budget update unveiled a $1.4 billion projected rise to the forecast state deficit of $3.6 billion in 2024/25.

The budget update showed net debt was expected to hit $155.2 billion by July and grow to $187.3 billion by mid-2028, after an $837 million blowout on the Melbourne Metro Tunnel and a $1.5 billion lifeline for the state's hospitals.

"We're not going to sugarcoat this and pretend that everything is perfect," Mr Pallas said.

He handed down his 10th budget in May, which revealed the Allan government was delaying more than 100 announced projects including a plan to build a new Royal Melbourne Hospital and Royal Women's Hospital.

Mr Pallas will officially retire at the end of the week, triggering a by-election for the seat of Werribee.