Papua New Guinea's opposition warns the country is facing financial turmoil and needs urgent belt-tightening measures.
Opposition Leader Don Pomb Polye has accused the PNG government of keeping government departments, business, banks and citizens in the dark about the extent of a cash flow shortage.
He said the signs and symptoms of financial crisis were obvious and included the non-payment of tuition fees to all schools throughout the country, which had forced schools in Morobe and other parts of the country to close.
The PNG government released a mid-year budget update on Monday which estimated the deficit for 2015 will blow out from 4.4 per cent of gross domestic product to a record 9.4 per cent.
There was no adjustment to budgeted spending.
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Finance Minister James Marape has blamed situation on the drop in global oil and commodity prices but said there was no need to hit the panic button yet.
He told The National newspaper the government was cutting wasteful spending and deferring some development to future budgets.
Australian National University Development Policy Centre visiting fellow Paul Flanagan said there are reports of expenditure restrictions being implemented and cuts being announced to departments.
"The silent path - simply not issuing warrants to agencies thereby preventing them from spending appropriated funds - is not transparent, makes effective expenditure planning extremely difficult, and does nothing to rebuild confidence in the economy," he said on the centre's blog.
