Niue's Government has been promised a bonus by its main aid donor if it can balance its budget and this is the motivation behind ten percent across the board cuts.
The budget has just been tabled and the Premier and Finance Minister, Young Vivian, says all but one of the 20 MPs is backing it.
He says New Zealand is offering an incentive to the island if it can balance its books for the first time in years.
"We will be given three percent on top of the total budget."
Mr Vivian says three percent is 137 thousand US dollars.
He says he will use the extra money to top up the wages of state servants.