The Tokyo Metropolitan Government estimates that the 2020 Olympics and Paralympics will cost a total of about 1.39 trillion yen, sources close to organizers said.
Moreover, seven prefectures and four major ordinance-designated cities outside the capital that will host some Olympic and Paralympic events are projected to be required to shoulder some 40 billion yen in total. The metropolitan government began on May 18 to explain the cost-sharing burden to these local bodies, but some are expected to object.
Tokyo Gov. Yuriko Koike intends to present the basic cost-sharing framework for the games by the end of this month.
According to the estimate, the metro government and the organizing committee for the Olympics and Paralympics would bear some 600 billion yen each. Though the organizing committee will earn income from sponsors and other sources, metro Tokyo's move to keep the outlays equal is intended to reduce local residents' resistance to the use of such an enormous chunk of public funds for the games.
The organizing committee will be required to try to increase its income, initially estimated at approximately 500 billion yen, by around 100 billion yen.
The central government will be committed to covering about 120 billion yen to build the new National Stadium in Tokyo, and around 30 billion yen out of the approximately 120 million yen cost of hosting the Paralympics.
Of approximately 40 billion yen that Tokyo will ask the seven prefectures and four major cities to shoulder, 5 billion yen will be used for transportation, 25 billion yen for security expenses, and another 5 billion yen for accommodations, medical services and other related expenses.
Since sources close to the organizers say that estimated expenses are based on approximate calculations, the figures could change as work to prepare for the games progresses.
At the end of last year, the organizing committee announced its primary cost estimate for holding the Tokyo Olympics and Paralympics was 1.6 to 1.8 trillion yen.
At a regular news conference on May 12, Gov. Koike said the Olympics and Paralympics budget could be improved by 200 to 300 billion yen through cost-cutting measures and the organizing committee's efforts to increase its income.
In the latest estimate, the total costs would be slashed by some 210 to 410 billion yen. However, there isn't a big difference between the initial estimate and the reviewed figure if 100 to 300 billion yen in reserve funds and part of security expenses that would effectively be footed by the central government are included.
It has been basically decided that the metro government and the organizing committee will go 50-50 on the 50 billion yen cost of building temporary facilities for events to be held outside Tokyo. However, the local bodies concerned deeply distrust the metro government and organizing committee due to the delay in their decision.
Prime Minister Shinzo Abe has instructed Tamayo Marukawa, minister in charge of the Tokyo Olympic and Paralympic Games, to coordinate views among relevant parties over the costs of the Games.
The national government is also considering reducing the financial burden on local bodies by providing tax grants.