Organisers of Bristol's St Pauls Carnival say they have managed to reduce its £15,000 deficit to £5,000.
A meeting of the carnival's board was told this had been achieved by making savings on performers' fees and by cutting overheads.
They had hoped to raise extra cash over the carnival weekend but failed to get a street collection licence in time.
Chair, Peninah Achieng, said despite the global financial crisis the board wanted the carnival to go ahead.
"With the lessons learnt the last three years and efforts underway to secure funds in advance of next year and with the continuing support from Arts Council England and Bristol City Council, we believe we are in a strong position for next year".