LONDON: The London 2012 Olympic Delivery Authority (ODA) announced on Monday they had successfully absorbed a 27 million pound government-ordered reduction in their budget.
The ODA also revealed the overall cost of the London Games was expected to fall by six million pounds.
Last month saw the new coalition Government confirm savings would have to be made on the project aimed at readying the capital for the 2012 Olympics and Paralympics.
In their Quarterly Economic Report the ODA revealed that target had been achieved through a combination of efficiency savings and procurement gains.
Of those savings, 13 million came from construction site security, 11 million from the international broadcast centre and main press centre, and 3 million from smaller changes to the basketball arena and velodrome.
The ODA insisted there had been no resulting reduction in the programme`s delivery, which remained on time and on budget.
They also revealed an additional 100m had been saved since their last quarterly report, taking the overall saving from the original funding package of 9.325 billion up to 700 million.
Minister for Sport and the Olympics Hugh Robertson said: "As we approach two years to go until the Games, and with over two-thirds of the construction phase complete, we are in an excellent position.
"The ODA have done an excellent job thus far, delivering a complex project on time and within budget, despite the credit crunch. Today`s report shows they have delivered 27 million of savings as part of the Government`s measures for reducing the deficit, while keeping the whole Olympic programme intact."
ODA chief executive David Higgins added: "We have hit all our milestones for 2010 and announced the next set, which will take us to next summer and the main venues and infrastructure needed for the Games will be complete.
"As we have done since the very start of the project, we have made savings through driving greater efficiency on a range of projects.
"We have made a total of 700 million savings in this way, most recently absorbing both the agreed 27 million reduction in the ODA`s budget and the impact of the Emergency Budget.
"We will continue to bear down those costs wherever possible, whilst ensuring we deliver what is required for both a fantastic Games in 2012 and a lasting legacy afterwards."
BDST: 1922 hrs, July 19, 2010