Hyogo Prefecture, grappling with significant financial difficulties, recently unveiled its initial budget proposal for the fiscal year 2026, amounting to 2.3182 trillion yen, which reflects a decrease of 40 billion yen or 1.7% from the previous year. This marks a critical point for the prefecture as it reverts to a ‘Borrowing Authority’ status for the first time in 14 years, requiring governmental approval to issue bonds. The budget includes incentives aimed at supporting the youth, specifically designated as the ‘Youth and Z Generation Support Package,’ which allocates 23.7 billion yen for various initiatives. The proposal is set to be tabled at the forthcoming regular prefectural assembly meeting scheduled for the 17th.

Governor Motohiko Saito emphasized that this budget is designed to be a ‘dynamic budget connecting to the future’ and is structured around five key pillars: fostering youth, safeguarding safety, enhancing regional vitality, deepening coexistence with nature, and strengthening governance. The strategic shift towards educational investment and youth support was highlighted, alongside cuts to infrastructure spending, in response to the financial challenges reflected in a budget shortfall of 12.9 billion yen. Some new initiatives include partial reimbursements for transportation costs related to childbirth and infertility treatments for young families, as well as the continued efforts to eliminate tuition fees at prefectural universities.