Fiji's Labour Party leader, Mahendra Chaudhry, says Government funds have been depleted to such a state that it is unable to pay the five million US dollar Cost of Living Adjustment owed to civil servants due next month.
The news site FijiLive says Mr Chaudhry claims that memos have gone out to all Government Ministries telling them to divert funds to meet the payment and to limit spending.
He says the Ministry of Health has been told to redeploy one million US dollars from its capital budget at a time when it needs additional funding to carry out urgent maintenance work and stock replenishment..
He said a similar amount was expected to be cut from the Education Ministry's budget.
Mr Chaudhry said the cuts would result in poor services to the public.