Nauru's President Marcus Stephen says his government remains hopeful that ongoing talks with the opposition can break the parliamentary deadlock.
Parliament hasn't sat in nearly a month after Mr Stephen adjourned it following the sacking of the Speaker amid a six-month long political deadlock after two general elections which failed to return a decisive result.
However neither Mr Stephen's group or the opposition is willing to nominate a speaker from their nine MPs each.
Mr Stephen says talks with the opposition parties offer the only hope that the government could proceed without the current State of Emergency provisions.
"We have no choice. For the Public service to continue daily and monthly business, we have to invoke this supplementary (budget) under state of emergency. And that can only go for twenty-one days. I can extend that if absolutely necessary which I've done once. I'm hoping that we can get a result with our dialogue with the other two parties and then we can move on."