OSAKA, Feb 17 (News On Japan) - Osaka City's 2025 budget proposal is set to reach a record high. While the city's debt has been reduced by nearly half over the past 20 years, financial projections indicate that deficits will persist for the next decade. Why is this happening?
Osaka aims to drive policies focusing on the success of the World Expo and investments in families raising children. The city's proposed initial budget for the next fiscal year, announced by officials, will total 2.309 trillion yen in the general account—the largest in history. This marks the fifth consecutive year of budget increases.
The general account covers administrative costs, including personnel expenses and social security. This record-breaking budget is attributed to rising salaries and increased welfare spending for the elderly and people with disabilities.
At the same time, tax revenue—the city's primary income source—is expected to hit an all-time high. This is due to corporate earnings growth and the conclusion of temporary tax cuts implemented to ease inflationary pressures.
However, expenses related to the World Expo’s maritime infrastructure will contribute to a projected deficit of 15 billion yen. To cover the shortfall, Osaka plans to dip into its financial adjustment fund, essentially the city's savings.
Over the past two decades, Osaka’s debt has been halved from its peak. However, the next 10 years will likely see persistent deficits due to increasing social security costs driven by an aging population.
"Many uncertainties remain in city operations. We will continue to manage our finances with caution to adapt to sudden changes in the economic environment," a city official stated.
Source: Television OSAKA NEWS
