The Papua New Guinea Chamber of Commerce has warned that inflation and other economic problems could increase if the proposal to triple the funds made available to MPs is approved.
The electoral support fund, known as slush fund, is disbursed to MPs in part for discretionary spending on projects in the electorate.
The newspaper, The National, reports that inflation has been cut, however the chamber says that could change if more than 53 million US dollars is put aside for the proposed bill.
The Chamber says it is alarmed at the number of politicians that have supported the proposal.
It says it appears, funds to schools, hospitals and other core government responsibilities will have to be reduced.
The Chamber says if the electoral funds are increased, parents and patients will have to pay more when many are already struggling.