SYDNEY - Papua New Guinea's (PNG) Minister for Finance, James Marape denies the government can't pay its bills following allegations the budget is under stress, News Limited reported Wednesday.

"In light of the falling oil and gas prices in the international market the government is prudent in its spending and that there is no need for panic," Marape told the PNG parliament on Tuesday.

In response to questions from PNG Southern Highlands authorities, Marape said the government is committed implementing cost-cutting measures and controlling expenditure.