Yubari City, the only municipality in Japan designated as a financial restructuring body, projects to finish repaying its debts by the end of fiscal year 2026. Mayor Tsukasa Atsutani presented the new fiscal budget, reflecting on a challenging 20-year period for the city, which has seen its population decrease to about 5,700. With its financial crisis declared in 2006, the city transitioned to a restructuring entity in 2007, shifting its substantial debt to long-term rehabilitation bonds, leading to an anticipated completion of repayment by March 2027, clearing the path to exit the restructuring status by fiscal year 2029.

To combat ongoing population decline, Yubari plans to implement a "Compact City" concept, guiding urban functions and residences towards areas expected to have higher population densities. The new budget not only incorporates funding for essential infrastructure projects such as the city hall and urban park renovations, but also establishes a comprehensive plan to direct post-repayment urban development. In addition, new initiatives like providing free school lunches for elementary and junior high students have been included, with an overall budget increase of 5.2% from the previous year, totaling approximately 10.94 billion yen.

At a press conference regarding future urban development following financial recovery, Mayor Tsukasa reiterated the city's commitment to face population decline directly. He highlighted that while the city may need to downsize, it aims to enhance the quality of life within the remaining urban space, thereby ensuring citizens' safety and happiness despite the reduction in size.