The Scottish Executive has cut the National Fund for Acquisitions (NFA) by 50%. The fund, which is administrated by National Museums Scotland (NMS), offers £200,000 a year to help museums and galleries buy objects for their collections.

The amount has remained static since 1996, meaning its value has dropped significantly in real terms. NMS director Gordon Rintoul said the cut would have a significant impact on museums and galleries.

“The NFA is one of the few funding sources by which regional museums, galleries, libraries and archives can grow their collections to maintain Scotland’s cultural heritage for this and future generations,” he added.

Rintoul has written to museums urging them to protest to the Scottish Executive about the cut.

In 2009-10, the fund awarded 83 grants totalling £203,783 that, along with matched funding from bodies such as the Heritage Lottery Fund, enabled museums to invest £803,000 in collections.

Among the institutions that benefited were the Gallery of Modern Art in Glasgow, which bought Jim Lambie’s sculpture, Seven and Seven Is.

Speaking on behalf of the Scottish Museums Federation, Scottish Mining Museum director Rowan Julie Brown said: “Many museums have no other source of income to support purchases, and NFA approval adds an air of legitimacy that helps staff make the case for additional matched funding.”

Museums Association director Mark Taylor said: “To arbitrarily slash the NFA by 50% with no consultation shows an arrogance and lack of understanding of its value that takes the breath away.”