ISLE of Man Sport and the Isle of Man Arts Council's revenue budgets have been reduced due to government cut-backs.
The Department of Community, Culture and Leisure (DCCL) said it has been necessary to reduce the revenue budgets for the two organisations but said the impact of the reductions has been "partially softened by the additional allocation of Lottery Trust money and the development of both sport and arts in the community remains a key objective for the department".
This coming financial year the department's budget has been reduced by £443,000 and it has warned it will have to cut posts - particularly within management and administration.
The department has also said it will have to increase the revenue it generates to partially offset the budget reductions and it has set challenging income targets to all services, totalling an increase of £363,100.
DCCL Minister Tim Crookall MHK said: "To achieve the increased income targets for 2012/13, the department will be progressing a number of customer service improvements including improved ticketing services at leisure venues, an improved web-based ticketing system within public transport as well as the introduction of transport smart cards."