Minister for Sport Hugh Robertson told ITV London that the government could only commit two years worth of funding for sport due to department expenditures.
£150 million has been invested into primary school sports as part of the Olympic legacy.
The arena which hosted handball and modern pentathlon fencing during London 2012 is to become one of the first legacy venues to re-open.
The Copper Box Arena, which also hosted goalball during the Paralympic Games, has been transformed to offer facilities for indoor sports training and competitions as well as cultural and business events.
It will open on July 27, says charitable social enterprise GLL, which operates the arena in the Queen Elizabeth Olympic Park.
Harrow's Olympic silver medal-winning canoeist Richard Hounslow has told ITV London that despite his success "no one recognises" him, but added that it allowed him to continue with his practice.
This time last year, the final preparations were being made for London 2012. The Olympic Games promised to inspire future athletes, attract foreign investment for London's businesses and bring billions of pounds into the capital's economy.
After one year, ITV London's Political Correspondent Simon Harris returned to Basildon to find out if athletes have really "inspired a generation".
It's almost a year since the Olympics and its sporting legacy appears to be dwindling. A survey by the Smiths Institute has found that the number of school children taking part in sport has fallen. A third of sports teachers in the capital have reported a 13 per cent drop in participation.
Mayor Boris Johnson talks about whether London's small businesses were sacrificed to big business during the Olympics.
This comes as The Mayor of Newham accused the government of exaggerating the effect of the Games.
Sir Robin Wales says much of the investment in east London was already planned, and was created by decades of hard work rather than an instant legacy effect.
The 2012 Olympics brought billions of pounds into the capital's economy, according to a report released today.
Foreign investment and lucrative contracts were won by London's big business in the wake of the Games.
But how much of the so-called Olympic Effect has trickled down to small businesses and ordinary Londoners?
Phil Bayles has been investigating.
A small business leader has questioned whether the Olympic effect was felt outside London, saying many regional businesses put in work for contracts that "didn't materialise".
The national policy chairman of the Federation of Small Businesses, Mike Cherry, told the BBC
– Mike Cherry
Out in the regions, we found that the effect of the Olympics and Paralympics, and the contracts we were expecting, really didn't materialise as much as I suspect many people were hoping for.
A lot of work went into it at the very beginning, when it was all announced. But although some businesses certainly got some really good contracts, for the vast majority it just didn't happen.