Creative New Zealand says it's "shocked and disappointed" after criticism of its funding decisions.
In June 2020, it announced it received $16 million for emergency arts funding from the government.
"An Arts Continuity Grant is offered to support a short-term arts project, or the stage of a project, that can be delivered within a changed and evolving environment as a result of COVID-19," it says on its website.
The organisation has so far paid out for variety of arts projects including puppet musicals, poetry publications and the development of theatre shows.
This was savaged by the Taxpayers' Union lobby group - which itself took more than $60,000 in taxpayer money as part of the COVID-19 wage subsidy.
"Many of the descriptions of these projects are, frankly, incomprehensible," it said in a statement.
"Creative NZ is fighting COVID-19 by spending taxpayer money on plays about menstrual cycles, Māori 'healing theatre', and 'Indigenised Hypno-soundscapes'."
In a Facebook post on Tuesday, Creative NZ defended its funding decisions.
"We're really shocked and disappointed at recent low blow targeting of artists we've funded - we stand by them and our decisions," it wrote.
"Ngā toi (the arts) and creativity are crucial for New Zealanders' wellbeing, especially during a time of crisis such as COVID-19."
However some social media users were appalled by their justification.
"It must be great to have a bottomless pit of free money to give away for things like poetry while small businesses all over the country are going broke and thousands are becoming unemployed," one wrote.
"It's not the concept, it's the quantity of funding for some particular projects that seems absurd," another Facebook user commented.
"You are a joke of an organisation and an embarrassment to all true New Zealanders."
But the organisation also had its supporters.
"Kia kaha and thank you for supporting the creative community," one person commented.
"Creative New Zealand dont listen to all the negative haters! Thank you for your mahi and support of arts and artists in NZ," another said.