The British government decided Wednesday to keep the London 2012 Olympics budget unchanged despite wide-ranging budget cuts to reduce the country's deficit.
The government announced that it is cutting its departments' budgets by an average of 19 percent. The Olympic budget is protected at $14.7 billion despite a 28 percent cut in funding to UK Sport, the country's primary sports agency.
''This settlement represents a positive outcome in difficult times,'' UK Sport chief executive Liz Nicholl said. ''While tough, it recognizes that the funding and support we give to Olympic and Paralympic sport is a crucial element of the nation's London 2012 ambition.''
Olympic organizers have scrapped plans to wrap the main London 2012 stadium with a huge piece of fabric. The decision to ditch the wrap around the 80,000-seat stadium will save $11 million of a total $32 million in efficiency savings.
The wrap was designed as a shelter for spectators and canvas on which to project images.
UK Sport said it can maintain its funding of Olympic athletes until after the London Games, when it will be reduced by 15 percent. An increase of $79 million a year in funding from Britain's national lottery will then compensate for some of the cuts.
''Ministers have been clear throughout the process that they see the continued support of sports and athletes through to London 2012 as a priority, and this reduction will not have any significant impact on our goals,'' Nicholl said.
The budget of the government's Department of Culture, Media and Sport will be reduced to $1.7 billion over four years.
''To deal with an unprecedented financial deficit, we have been forced to make some incredibly difficult decisions,'' said Jeremy Hunt, secretary of Culture, Olympics, Media and Sport. ''But, in the current economic climate, this is a good settlement for DCMS's sectors.
''We will deliver a safe and successful Olympics in 2012 when the eyes of the whole world will be upon us.''
