Gwent Police could be facing a cut of more than £5.6 million in its Government funding next year.
The force next year is due to get £77.6 million in funding from the Home Office and the Welsh Government – compared to the £83.2m it got this financial year.
Announcing the settlement for all four Welsh police forces, Welsh Government Minister for Local Government and Communities Carl Sargeant said hard choices were needed to be made.
He said: “This is without doubt a very challenging settlement for the police service that will require hard choices in order to protect front-line policing.
“The police authorities in Wales have a very good record of collaboration in the development and provision of services.
“In addition, the police are participating in a shared agenda across the public sector in Wales to promote efficiency and innovation in public services.”
The money the Welsh Government gives to the force comes from the grant it receives from the UK Government and from business rates.
The locally funded element of police money – which residents see on their council tax bills – will not be decided until early 2012.