The board of Scottish arts development body Creative Scotland has said it will not pass on the 3.6% funding cut planned by Scottish government for 2016/17 to its regularly funded organisations.
Regularly funded organisations for the period 2015-18 include the Edinburgh International Book Festival, the Scottish Poetry Library, Publishing Scotland, the Glasgow Women's Library and Wigtown Book Festival.
Creative Scotland said it also planned to continue funding five sector development organisations - including Arts & Business and the Cultural Enterprise Office - at the same level for a further 12 months, in spite of the cuts.
A statement from the body said: "We will achieve the necessary budget reductions, which total £1.2m, by making efficiency savings to our own operations and through careful phasing of the funds we distribute."
"While the draft budget outcome for culture does present challenges, we will continue to work tirelessly to raise the profile of the value of the arts, screen and creative industries to all our lives and to get the message across that creativity matters."
Creative Scotland’s discretionary Grant in Aid Budget for 2015/16 is £33,412,000. However the Scottish Government’s draft budget presents a discretionary Grant in Aid budget for 2016/17 of £32,212,000, a reduction of 3.6%.
Creative Scotland's Open Project funding will continue to be funded from the National Lottery, and remain stable in 2016/17.