Buckingham Palace says the royal family cost Britons 62 pence 0.94 per person last year,7 pence less than in 2008-2009.
Accounts released on Monday show the total cost of supporting the monarchy was 38.2 million in the year to March 31,more than 3 million less than the year before.
Britains public sector is facing cuts as the government tries to eliminate a huge deficit,and Alan Reid,Keeper of the Privy Purse,said the royal household is acutely aware of the difficult economic climate.
The queen receives 7.9 million of public money each year to pay for staff and other costs.
The accounts show she also drew an extra 6.5 million from a reserve fund built up over the years by saving portions of her allocated budget.
The drop has been attributed to cuts in the number of commercial charter flights taken by the Royals and a refund of lease rentals from the Queens helicopter,which was replaced last year.
The accounts also showed that the Queen dipped into a reserve fund to boost her Civil List by 6.5million in 2009,meaning at current rates she will be effectively broke by the 2012 Golden Jubilee. The total cost of the Queens Civil List 8211; which pays for the running of the Royal Household including staff salaries 8211; was 14.2million in 2009,up 300,000. It was made up of 7.9million from the Government and 6.5million from the reserve. If the Queen continues drawing on the reserve at the current rate,she is expected to run out of funds by the start of 2012 8211; the year of her Diamond Jubilee. The current deal for the Civil List which gives the Queen 7.9million a yearwas agreed by then prime minister Sir John Major in 1990.