Government stands ready to offer funding advicepublished at 14:37 Greenwich Mean Time 10 January 2018
Culture Secretary Fiona Hyslop says a final decision not to provide funding was made on 22 December.
She hopes the organisers can pursue other options to take the festival forward anyway.
The government stands ready to offer advice on alternative sources of funding should they be approached, she adds.
Tory MSP Tom Mason - who is also a sitting councillor in Aberdeen - explains the decision was taking due to declining participation in the festival over recent years.
Ms Hyslop emphasises the need to support local organisations and events, suggesting Mr Mason was attacking the organisers of the youth festival.