"As the project develops and you have more certainty so it (costs) goes down," Armitt said. "All we're doing is saying we have very limited information at the moment."
The Olympic Park site in Stratford, east London, is being prepared for construction to start next year. It will be home to the Olympic stadium, aquatics center, velodrome, fencing, field hockey, handball and basketball arenas, with the athletes' village and main press and broadcast centers adjacent to the site.
The London Olympic organizing committee has a separate operational budget of 2 billion pounds (US$4.1 billion; euro2.7 billion), raised through sponsorships, television rights fees, merchandising and ticket sales.
International Olympic Committee president Jacques Rogge said the huge budget increase had confused the British public.
The original bid budgetary figure was based on 2004 prices, did not include a contingency fund or Value Added Tax, which is placed on consumer expenditure and is collected on business transactions, imports and acquisitions.
"That creates confusion among the general public, who think that the budget has exploded," Rogge was quoted as saying in Tuesday's edition of The Guardian newspaper. "There is a perception that there is a big difference but if you look at the constant
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