The cost of staging the 2014 Commonwealth Games in Glasgow has risen by £81million to £454million.

The Scottish Government, Glasgow City Council and the Games Organising Committee have been forced to plug a funding gap caused by an increase in broadcasting and staffing costs.

The announcement follows a budget review by the organising committee, who put the initial cost at £373million.

Most of the extra cost (£59million) will be met by the Scottish Government, with £9 million more coming from the council and £13million from the organising committee.

Speaking at Hampden Park on Monday, Games chairman Lord Smith said: "This organising committee is committed to running a tight ship.

"We understand fully our responsibilities to the taxpayer, as well as the athletes, spectators and other stakeholders in the Games.

"None of the Games' partners want a position to emerge where the Games' budget keeps creeping up over the period between now and 2014, so we have approached this exercise with a desire to be as realistic as possible.

"We are all united in the belief that these Games can be the catalyst for significant change, and that they will generate enormous sporting, social and economic benefits for the whole of Scotland.

"We are confident that the budget announced today will enable all those potential benefits to be realised.''

Lord Smith said the cost of delivering the broadcast signal had increased "dramatically'' due to advances in technology, including the introduction of high definition, and the failure to sell the domestic rights to the BBC.

He said: "Previous Games have been able to offset the host broadcast costs against the sale proceeds for the domestic rights.

"At this stage the organising committee has been unable to engage the BBC on this basis and with the current categorisation of the Commonwealth Games as a B-list event is unlikely to be able to secure another domestic broadcaster.

"In effect, the Commonwealth Games is viewed as a 'BBC event'.''

Organisers said an extra 100 staff will be needed to host the Games, bringing the total between 950 and 1,000, and adding £8.8million to the budget.

Since the bid was finalised there is now a legal requirement for companies to pay compulsory pension contributions to all staff.

An extra £41million will go on the "core budget'' and the contingency fund has risen by half to £60million, money being spent on projects such as putting an athletics track in Hampden, which will involve raising the ground's base level by a metre and a half.

Thirdly, an additional £20million has been set aside by the Scottish Government as a reserve to ensure there will be no future budget increases for the Games, which kick off on July 23, 2014.

First Minister Alex Salmond said: "The budget increases are going to be challenging but they are necessary.

"It means we can guarantee the successful delivery of the Games.''

Glasgow City Council leader Steven Purcell said: "I'm disappointed that we found ourselves in this position.

"I'm certain that this is necessary if we are to stage a Games that will leave a lasting legacy.''

The original budget estimate did not include the £1million cost of CCTV coverage for the area around the athletes' village in the east end, which will also house a new national indoor sports arena and velodrome.

The total also omitted specialist work required at Hampden (£2million) and the leasing of offices (£3.3million), as it was assumed that organisers could use council buildings.

And specialist support provided by people involved in previous Games required an extra £5million.

The First Minister added: "There are still issues to be resolved. The Scottish Government will continue to make the case for the recovery of £150 million lottery funds diverted from Scotland to pay for the London Olympics.

"And to call for Scotland to receive its share of Olympic regeneration investment.

"An estimated £165million has been lost because this funding was not subject to the Barnett formula in the normal way.

"However we can't wait for this to happen to guarantee the position of the Games and therefore this detailed review takes account of all eventualities and will ensure that the Games are funded adequately and properly.''