42 Prefectures to Boost FY 2026 Budgets as Payrolls, Prices Rise

Tokyo, March 4 (Jiji Press)–Forty-two of Japan’s 47 prefectures will increase spending in fiscal 2026, as labor cost and price increases are seen offsetting stronger tax revenue, a Jiji Press survey showed Wednesday. Combined draft general-account budgets at all prefectures for the year from April total about 62.53 trillion yen, up 5.6 pct from the current fiscal year. Twenty prefectures, including Tokyo, Osaka and Fukuoka, compiled record-high budgets. Local tax revenue is projected to rise 3.9 pct to about 23.96 trillion yen at all 47 prefectures. Thirty-nine expect rises reflecting growth in corporate-related taxes and higher individual resident tax revenue backed by increased individual income. Of them, 29 forecast record tax revenue. Expenditures are also expected to increase, due to higher public servant pay, countermeasures against inflation, and free elementary school lunches and high school education. Many local governments are prioritizing child-rearing support and measures to tackle labor shortages. Some are working to help small enterprises create conditions conducive to wage gains. Three prefectures–Ishikawa, Kyoto and Nagasaki–adopted skeleton budgets tied to gubernatorial elections. END [Copyright The Jiji Press, Ltd.]