Culture, Media and Sport Secretary Jeremy Hunt told MPs that the arts needed to "take a share of the pain" in tackling the deficit, during a session with the CMS Committee on 30 March 2011.
The Arts Council had its budget cut by 15%, which Mr Hunt said was less than the average cut across government departments.
He also said the cuts would be offset by changes to the way in which Lottery funding is used.
However he refused to be drawn on where the organisation would make cuts following the reduced funding - saying it was an arms length organisation and it was not for him to comment.
MPs also questioned him on the future of the BBC.
He has said the BBC should make savings by being more efficient - and not by cutting "core services", such as local radio.