Due to insufficient funding, plans to publish the first daily Welsh-language newspaper have been abandoned, as a £200,000 annual grant for the next three years just isn't enough, the company behind Y Byd (The World) announced.

Dyddiol Cyf criticised the assembly government for not supporting Welsh-language press by not expanding its funding, BBC News reported Friday.

The government said more than £1 million will be invested in the sector over the next three years, in response to Dyddiol Cyf.

Ned Thomas, chairman of Dyddiol Cyf, said his organisation is “firmly of the opinion” that the government is not fulfilling a pledge to expand the Welsh-language sector and set up a paper in the language. The pledge is detailed in the coalition One Wales document, BBC News reported.