Its budget has been trimmed by four percent and it must save 12% running costs but it will spend an extra £3.6m on its portfolio.
Among the recipients of the biggest increases in funding are National Theatre Wales, Welsh National Opera and Ruthin Craft Centre. Funding will also increase to many community arts groups, and one-off grants will be given to 13 organisations for specific projects.
Five groups will receive less money, but five others have been awarded fixed funding for the first time. Read more on the story on BBC Wales News online.