Feb 11 • 00:30 UTC 🇯🇵 Japan Asahi Shimbun (JP)

‘Dual-use Budget’ for Financial Reconstruction and Future Investment: Shizuoka Governor Announces New Fiscal Budget

The Shizuoka prefecture has announced a record budget of 1.4141 trillion yen for the 2026 fiscal year, prioritizing financial reconstruction alongside future investments.

On the 10th, Shizuoka Prefecture revealed its draft general account budget for fiscal year 2026, totaling 1.4141 trillion yen, an increase of 41.8 billion yen or 3.0% from the previous year, marking the largest increase for two consecutive years. Governor Yasuyuki Suzuki emphasized the need for a balance between fiscal reconstruction and future investment, indicating efforts to reduce expenditures on policies while increasing costs related to personnel and social security. The draft budget also reflects a priority on fiscal health amidst a broader commitment to sustainable growth and investment for the future.

Under the new budget, the issuance of deficit local bonds, termed 'financial preparation bonds,' will be cut by 3 billion yen from the previous year to a total of 5 billion yen. Moreover, the anticipated revenue shortfall has been significantly reduced from 640 billion yen to 285 billion yen, showcasing efforts to stabilize fiscal management. Governor Suzuki described prior financial operations as a 'cycle of insufficient operational efforts' that has now reached a phase of necessary reform, alongside plans to further reduce costs through initiatives such as cutting public vehicle usage and limiting overtime for staff.

The mid-term fiscal plan outlined goals to increase the balance of the 'fiscal adjustment fund' from approximately 18 billion yen now to 56.5 billion yen by fiscal year 34. Predictions suggest that the ratio of debt repayment, currently estimated to reach 17.6% by fiscal year 34, can be constrained to 15.9%. Additionally, plans to reduce staffing levels by 11.8% by fiscal year 35 are in place, reflecting anticipated population declines. Governor Suzuki assured that, even with fewer staff, the quality of administrative services would be maintained and improved through the use of digital technologies.

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