Ms Jowell said that the majority of visitors to the fountain since its opening had behaved appropriately.
BBC: NEWS | UK | England | London | Public blamed over Diana fountain
And shadow cabinet office minister Tessa Jowell said she was unconvinced by the government's defence of its idea.
BBC: Prime Minister David Cameron defends Big Society policy
Culture Secretary Tessa Jowell said the plan showed the Games' power to "change lives on and off the sporting field".
The contingency fund will ensure the government cannot be "held to ransom" as it aims to hit deadlines, Ms Jowell said.
But speaking on BBC Radio 4's Today programme, Ms Jowell said she was sceptical about the merits of banning junk food ads.
Ms Jowell said Team GB's winning performances had been "no accident" but the result of "sustained and well-directed investment of public money" since 2005.
Responding to criticism of the decision to use more Lottery money, Ms Jowell said that in the "overall scheme of things" its contribution was relatively small.
Culture Secretary Tessa Jowell said that no Olympic planning had been based on Crossrail, and Transport Minister Alistair Darling said the scale of the project would make such a date unlikely.
BBC: NEWS | UK | England | London | On track for Olympic bid?
Raising the issue at culture, media and sport questions in the Commons on 15 December 2011, Tessa Jowell said the IAO was meeting that day to condemn the firm's "controversial sponsorship" of the Olympic Stadium.
Both Mr Cameron and Ms Jowell said they hoped the volunteers would get involved in a new charity Join in Local Sport which is helping thousands of clubs and community groups throw open their doors to "capture the enthusiasm" for sport after the Olympics.
"I believe that in its final version, the act will deliver on its central aim - to bring the interests of us all as citizens and consumers to the fore, while increasing investment and maintaining high standards, " said Ms Jowell.
For Labour, Tessa Jowell agreed the system needed reform but said her party would not have sought to impose a deal if it had still been in government.
"The fashion industry's promotion of beauty as meaning stick thin is damaging to young grils' self-image and to their health, " said British Culture Secretary Tessa Jowell at the weekend, urging London Fashion Week to follow Madrid's example.
Culture Secretary Tessa Jowell, who announced the increased budget for the 2012 Games on Thursday, said the decision to redirect lottery cash was taken "after very careful consideration".
BBC: NEWS | UK | England | Oxfordshire | Arts events under funding threat
Tessa Jowell, Olympics minister and Secretary of State for Culture, Media and Sport, said Dame Kelly's involvement would be "a real boost" for school games.
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