The newspaper said the announced sum of £9.3 billion of public Olympic spending “substantially understates” the true position which is at least £12 billion.
It also said much of the extra spending is “hidden” or has been “buried in obscure documents and reports”.
A spokesman for the Department for Culture, Media and Sport said: “We were always clear that there would be additional spending by other public bodies in addition to the main £9.3 billion allocation. The Olympics will leave lasting benefits for the whole country. It is an investment in our future, not some sort of burden.”
The extra £2.7 billion reportedly includes £1.15 billion spent by London mayor Boris Johnson’s London Development Agency to buy and clean up the Olympic site and £269 million in interest payments and £90 million in Olympic grants.