The minister said the Commonwealth Games had in the past given a good return on investment.
The 2014 Glasgow games left a legacy in housing and sports facilities, as well as benefiting future generations of athletes, she said.
But she added: “We will have to cautiously scrutinise the risks and benefits for the nation.
“We are in a very difficult financially constrained time and we will have to carefully navigate that”
In a stripped down games, athletics and swimming are likely to be included, with other sports at the discretion of the hosts.
Track and field could be difficult as the 2014 games used a modified Hampden Park.
The athletes village built for the previous games has also been converted to housing so a new accommodation solution would be needed.
The Commonwealth Games Association is currently holding confidential discussions with possible hosts, but a decision could come in May.
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