Treasury officials have warned the Niue Government that subsidies on fuel are posing a serious threat to the island's financial viability.
In a special report it has been revealed that Niue's Bulk Fuel department has an operating deficit of 600,000 US dollars due in subsidies to the electricity supplier, land clearing contractors and the island's designated airline, Air New Zealand.
Officials warn that unless the government stops subsidising fuel there will be insufficient funds to pay for the next shipment of petrol and diesel.
The report also cites illegal payments of the pension as adding to the country's financial woes.
