The director general of the Vanuatu Ministry of Education, Jessie Dick, says it has exhausted all available funds in its 2012 operational budget.
Mr Dick says the remaining money was used by the Council of Ministers to settle an outstanding debt of 17 million vatu, or about 185,000 US dollars, owed to a stationery provider.
He says this may mean staff are not able to fulfill activities scheduled for this year.
Mr Dick has written to staff to say further discussions will be held with the Office of the Prime Minister and the Minister of Finance asking for additional assistance to sustain the ministry until the end of the year.