The Premier of Niue, Young Vivian, believes that the tiny island will be able to manage a sizeable deficit.
The Government has been struggling to bring in a Budget that trimmed spending by up to twenty percent.
A measure that cut pensions, child allowances and subsidies to village and church councils was defeated in the Assembly three weeks ago.
A modified Budget that restores child allowances and funding for the village councils will be re-submitted on Wednesday and the Premier is confident he now has the numbers to pass it.
Mr Vivian accepts these concessions add to the deficit.
"A little bit maybe but we have tried to keep it round about 1.4, 1.5 something manageable, something that we can cope and live with and also get back to a position where we can build up some reserves for the future."