The National Galleries of Scotland will not lose its annual £1.3m purchase grant for new acquisitions awarded by the Scottish Executive, contrary to recent reports in the Scottish press.

An ambiguously worded section in a document produced by the Scottish Executive, Efficiency Delivery Plans, on the £10m awarded in February towards purchasing the Anthony d'Offay collection, prompted reports that the National Galleries of Scotland would lose its acquisition funding.

The government report, published by finance secretary John Swinney, set out plans for efficiency savings of £1.6bn in the public sector over the next three years.

The document stated: "This purchase [D'Offay] filled a major gap in the National Galleries of Scotland's collection (modern/contemporary art) which it might otherwise have expected to use its annual £1.3m purchase grant to fill.

"There is therefore a reoccurring efficiency of £1.3m derived from the D'Offay acquisition as its purchase grant can be allocated to other priorities within the Galleries of Scotland."

Confusion arose over the meaning of "other priorities", but a National Galleries of Scotland spokesman insisted that the purchase fund was "100 per cent ringfenced" for buying works.

He added that the D'Offay acquisition "alleviated pressure in the area of [purchasing] contemporary art". Simon Groom, director of modern and contemporary art at the National Galleries of Scotland, said he was confident that the "National Galleries would not lose out in any way".

The 725-piece modern and contemporary art collection owned by London dealer d'Offay was bought for £28m, with the Scottish Executive and Department for Culture, Media and Sport providing £10m each. Tate will jointly own and show the works with the National Galleries of Scotland.

Linda Fabiani, minister for Europe, external affairs and culture at the Scottish Executive, said: "The Scottish government's contribution to that purchase [D'Offay] freed up the National Galleries' annual purchase grant for other purchases."

The efficiency report also suggests a "reduction in numbers across a variety of areas including visitor services, photographers and better use of temporary staff" at National Museums Scotland to help achieve savings of £2.2m from 2008-09.

Meanwhile, Glasgow Gallery of Modern Art (GoMA) failed in its bid to secure £300,000 in the latest round of Scottish Arts Council funding grants allocated for 2009-11.

A GoMA spokesman said the decision would not have an adverse effect on the gallery, "not least because of the recent award of £1m by the Art Fund to buy exciting new works over the next five years".