The PFNI has said there is a total disregard for policing when it comes to funding the PSNI.
The outgoing Chair Mark Lindsay said the situation is likely to drastically worsen over the next three years if an Executive does not agree a budget for justice.
"It's almost a total disregard, as if policing isn't important," Mr Lindsay told Belfast Live.
Read more: Police Federation Northern Ireland exploring industrial action for PSNI officers
"It's as if "well you've done it before, you can do it again' but we can't actually keep doing it, a lot is starting to break.
"We've seen an Executive which has presided over basically the collapse of our NHS, are they doing the same with policing?
"They're going to do the same to policing if they carry on the way they're going."
The PSNI Chief Constable Simon Byrne said officers were justified in seeking a greater pay award having been awarded none for this year.
Pay award decisions are set out by the independent Police Remuneration Review Body, with the Chief Constable saying he could not give pay rises of his own accord.
"Like everyone else in Northern Ireland, officers are affected by the rising cost of living, anxiety and uncertainty on how they're going to pay their bills, coupled with a real sense of duty," he said.
"What we want to see is a resolution, we want to see the government back so that we can actually make sure there is a listening ear to the very genuine and heartfelt concerns that we want a fair pay rise."
Mr Byrne warned that without adequate funding, the police service had reached the point where it would lose 1,000 officers over the next three years.
"Clearly there's a risk that complex investigations will slow down because we're not likely to have enough detectives to be able to do that in the way people have been used to.
"If there's an immediate threat to life, we will still prioritise that, but other types of crime that people expect a service for, will take longer."
The Justice Minister Naomi Long said she hoped it would not reach the point where officers explore industrial action, as first reported by Belfast Live.
"I understand the desire of officers to be able to make their voices heard, but I think given the essential nature of policing services, were people to withdraw their cooperation in some form of industrial action, it would create a real issues around public safety," she said.
"The challenge for the PFNI is obviously to get the best deal possible for policing and I understand and accept that, but my challenge is more complex.
"My challenge is about ensuring the Department of Justice budget is spent properly across all the parts of the justice system, the courts, the prisons, probation, all of the different elements that allow that system to function.
"We need to get that balance right because if we don't have enough police officers that is problematic, but equally if we have a lot of police officers but not enough court time, judges and other parts of the system, then the justice system doesn't function.
"So what we need to do is ensure the system as a whole is properly funded, and policing is a key part of that."
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