A Scottish Government scheme will see money seized from criminal activities providing an investment of £2m in sports facilities and another £1.8m in supporting arts.

It is the latest round of grants made available using the government’s Cashback for Communities initiative, which uses money seized from drug dealers and other criminals and has to date funded community projects worth £10.4m.

Exact details of how the money will be spend will be released later, but according to a Scottish Government spokesperson, the funding will go into ‘bricks and mortar’.

The announcement comes during the same week as a further £1.4m from the Cashback for Communities scheme was earmarked toprovide free rugby coaching and playing activities for over 32,000 young people throughout the country by 2011.

Scottish Rugby Union (SRU) has been tasked with delivering a comprehensive three year programme across Scotland to encourage participation with activities including offering rugby to children in primary and secondary schools, particularly where there is little opportunity to play rugby at present; and linking schools activity to local rugby clubs and creating satellite rugby centres for disadvantaged and disengaged youngsters.

Justice secretary, Kenny MacAskill, said: "Criminals don't contribute to our communities – they live off them. That harms our economy.

"That's why it's time for crime to pay and we have put the measures in place to ensure even more of the cash criminals make off the backs of law abiding folk flow back into our communities."

Sports minister, Stewart Maxwell, said: "Today's announcement is a tremendous boost for youth rugby and builds on the significant investment the Scottish Government already makes in the sport.

"This funding will strengthen the infrastructure that will support and inspire them to realise their sporting ambitions.