As expected, sport took a bit of a beating in Government's annual budget that was announced yesterday.

With Finance Minister Paula Cox setting Government departments a target of reducing their budgets by 10.5 percent, the Department of Youth, Sport and the Environment saw their allocation fall by $3.3 million to $40 million, a drop of roughly eight percent.

In all there was a $1.7 million reduction in the amount of money the department of sport will receive next year, falling from $15,198,000 to $13,475,000.

The biggest chunk of the loss came from grants and contributions which was cut by $875,000, while Elite Athlete Assistance, which many had expected would go up after it was mentioned in the Throne Speech, remained the same at $200,000.

Hardest hit, however, was sports development which saw its funding fall by 11 percent from $5,179,000 to $4,605,000.

What this means in practical terms isn't yet clear. While confirming that his department would have to adjust their approach to some projects, Sports Minister Glenn Blakeney would not be drawn on which specific areas might suffer.

"It's going to be a juggling act for us," he said.

"We're going to be challenged with prudently assessing, on a priority basis, where the allocations are going to be to get what we want from what we have to work with."

Under the previous Sports Minister, El James, a variety of ambitious projects were announced, such as the multi-purpose sports facility at White Hill.

Given the changes in the economic climate, it now appears that those projects are likely to be scaled back.

"We are going to be very sensitive, but we expect equally for there to be some understanding regarding the economic climate and the challenges that we face," added Blakeney.

"We're going to look at things from a realistic persepctive, but funding isn't going to be to the degree that has been requested.

"We also have the 2013 (Island) Games coming and there is some provision that needs to be considered just to keep those Games, such as the facility for shooting.

"However, the good news is that we already have the $15million for the aquatic centre and that is moving forward."

The Swimming Association maintained its current funding at $25,000, but yachting saw its funding drop $50,000 to $25,000.