Twenty-two back benchers in the Vanuatu government are refusing to support any government bill until a rejection of the new decentralisation policy is reconsidered.
The Ministerial Budget Committee has rejected the decentralisation policy despite the Minister of Internal Affairs, Alfred Maoh, having it endorsed by the Council of Ministers.
The policy calls for Area Councils to be allocated annual budgets of $US93,000 dollars each.
The Prime Minister had highlighted the new budget allocation in his national address to mark the country's 36 years of independence earlier this year.
This is the first time Charlot Salwai's government has shown any signs of disunity.