Government is cutting back on its allocation for Carnival 2016 by about $45 million.
According to Minister of Culture Dr Nyan Gadsby-Dolly the recession is affecting Government's ability to fund the greatest show on earth.
With all government ministries cutting back on expenditure, she says its only natural that there will be less money spent on Carnival 2016.
"There's an allocation in the budget that is runs at about $270 million and there are other things that are also funded from different ministries, different state enterprises and so on so it's a figure that's really a combination of all those amounts," she says.
Last year's celebration was allocated $314 million, but she says Carnival stakeholders have no need to worry.
She told reporters at the opening of the Beetham Community Centre that her Ministry is in constant communication with all affected parties.
She says many understand the economic situation.