The Papua New Guinea Treasurer, Patrick Pruaitch, says budget cuts and new borrowings show the government is demonstrating responsible fiscal management.
In a statement released just ahead of Tuesdyay's opening of the new parliamentary session, Mr Pruaitch says the much feared budget blowout will not happen.
Mr Pruaitch says the government has not succumbed to calls for panic measures over the budget because the economy has the resilience and strength to withstand the international commodity downturn.
But he says the new budget, being released in two weeks, will be less expansionary, safeguard future growth and focus on improving living standards for all Papua New Guineans.
He has dismissed calls to slash spending, saying cuts already made of US$476 million dollars coupled with extra revenue being taked from state enterprises of another US$375 million, will mean there will not be a budget blowout.
He says the International Monetary Fund has counselled against bigger cuts, saying they could have detrimental effects during a slowing economy.
Mr Pruaitch says the new cuts will bring the final 2015 deficit in line with the government's original projection of US$783 million dollars.