P.E.I.'s NDP is wondering what the provincial government is doing with $700 million in treasury bills approved by cabinet last month.

NDP spokesman Joe Byrne called the loan worrying, especially when government departments are being asked to cut their budgets.

Finance Minister Wes Sheridan described the treasury bills as a bookkeeping move.

"What this does is just allows us to take advantage of these lower interest rates, and allows us that versatility to do what we need to do instead of putting it all out in long-term money," said Sheridan.

Sheridan described the treasury bills as a sort of low-interest line of credit for government.

He said the only change made last month is that government now has a $700-million limit to work with instead of the previous $500 million.