＼Learning with Meri and Hari ／MeriHari

What is Tokyo’s budget?

Taxes, etc.
Revenue

BudgetExpenditure

Administrativeservices

The estimated revenues and expenditures for
one fiscal year are compiled in a budget.
The Tokyo Metropolitan Government (TMG)
uses the taxes paid by the residents of Tokyo
to provide administrative services, including
disaster prevention and welfare measures.

I see.
It’s like an annual

１business plan!

How big is the budget?
About the same size as somenational budgets: 16.6 trillion yen
Account TypeFY2024
BudgetTotal accounts

JPY 16.6TRemarks

Generalaccount

For administrative services such
JPY 8.5T as disaster prevention and welfaremeasures, based on taxes

Specialaccounts

For specific objectives such as
JPY 6.2T management of metropolitan
housing

Publicenterpriseaccounts

JPY 1.9T

Compared to,for example,

For water supply and sewerage
and other enterprises managed
by the TMG

Sweden’s budget
19.0 trillion yen
Czech’s budget
14.5 trillion yen※ Budget amounts in yen are calculated at the exchange rates as of January 2024.

The general account budget, which
is mainly prepared from taxes, isnow 8.5 trillion yen. Next, let's takea look at the overall picture.

２

Budget overview

Budget size
General account total expenditures

8.4530 trillion yen（＋412.0 billion yen, ＋5.1％）

General expenditures
Policy related spending

6.3702 trillion yen（＋434.8 billion yen, ＋7.3％）

Tax revenue
The TMG tax revenue amount,including corporate inhabitant andenterprise taxes, and fixed assets tax

6.3865 trillion yen（＋185.5 billion yen, ＋3.0％）

So, the FY2024 budget is bigger thanlast year’s. Where is all that money

３going?

for FY2024※The numbers in brackets ( ) are the changes from the FY2023 budget.
Budget per Tokyo resident A budget increase overHealth and Welfare
Education and Culture

the previous year withLabor and Economy
Living Environment

741 new projects

2024
1994

Urban Development
Police and Firefighting
Planning and General Affairs

Breakdown Increase of 434.8 billion yen

Generalexpenditures
Salary-relatedexpenses
Other ordinary
expenses
Investment
expenses
Expenses for
public bonds
Tax-relatedexpenses, etc.

mainly due to an increase inmeasures to realize asociety where people shine Increase of 185.5 billion yen

Changes in metropolitan tax revenue

mainly due to increases incorporate inhabitant and enterprise

Other taxes
Corporate inhabitant and enterprise taxes

taxes from steady businessrevenues, and increases in fixed
assets tax and city planning tax

1991
1991

2024
3

A main focus of the budget is measures torealize a society where everybody, fromchildren to older people, can shine.

４What approaches are taken
Promotion of policy review, project review
and 政策評価・事業評価の推進
group cooperation project review
施策の新陳代謝を強化する取組
Initiatives to bolster the reorganization of measures✔ Project
事業評価✔
review✔
review✔ Policy
政策評価

13groups
11 policy
事業ユニット

1,515
1,436 reviews
件
1,141
126.6

(113 projects intotal)（ユニット内事業89件）
億円 yenbillion＊Policy review: Publishedpolicy reviews＊政策評価は公表件数＊Project review: Publishedproject reviews (top), Amount of finances）
secured (bottom)＊事業評価は公表件数（上段）、財源確保額（下段Utilization of funds
Money is set aside in funds for future expenditure
increases and other needs✔ Balance of funds（＊）: 1.5813 trillion yen＊Based on the ordinary accountUtilization of TMG Bonds
To adjust financial resources between fiscalyears and strive for intergenerational equity✔ TMG bonds issued : 312.7 billion yen✔ TMG bonds balance : 4.7324 trillion yen

It’s a budget to advance Tokyo’s steps
toward a sustainable future! But it seems

５

like that will take a lot of money. How does
Tokyo secure its fiscal resources?

in budget compilation?
Changes in amount offinances secured

 Renewal of policies are boosted
even more through the newly
established group cooperation

Finances secured overthe last eight years:
About 810 billion yen

project review in addition to policy
and project reviews.
2017

2007

 In order to steadily promote urban
resilience and other measures,funds are actively used while2024

Change in the balance offunds

2.2505 trillion yen

1.5813 trillion yen

Proactive use of funds

also securing a certain amountof savings.
 Giving consideration to burdens on
future generations, TMG bonds are2023* After final budget revision

Changes in TMG bonds
balance7.6384 trillion yen
4.7324 trillion yen

used in a planned manner.
The TMG bonds balance has
decreased by about 40 percent

2024

Down by about 40%
from the peakfrom its peak.

That’s done through various
approaches in fiscal management,such as bolstering the reorganizationof measures and utilizing funds andTMG bonds.

2001

2024

６

Eight Pillars of the FY2024 Budget
In order to pave the way to a bright future for Tokyo and Japan, key measures
are arranged under eight pillars to strive for the structural transformation ofindustry, economy, and society, and to achieve a bright Future Tokyo where
each and every individual shines.

Financial and economic citycreating innovation
World city of choice full ofa wide variety of attractions
The World’s Safest, Most Secureand Resilient City
Respond to the climate crisis
and accelerate decarbonization“”“”

Promotion of the Tama area and theTokyo islands

A City Full of the Smiles ofChildren

Promotion of Smart Tokyo andShin-Tosei (Structural Reform ofthe TMG)

Inclusive society where everyone
can shine and be successful as
they are※The budget for each pillar includes projects that are also covered under other pillars.

Can you tell me what specific projects will beundertaken?
Okay, let’s take a look at each of theseeight pillars to check out some specific７projects included in the budget.

Inclusive society whereeveryone can shine and be
successful as they are

JPY 287.2 bn

Tokyo will become a society where everyone can live
without fear, shine in their own way, and lead active lives.

Key new andexpanded projects● Establishment of career center for seniors● Housing support special allowance project forcare workers and care managers● Employment environment development project
toward promotion of women’s
empowermentetc.

8

A City Full of the Smiles ofChildren

JPY 856.0 bn

Tokyo will become a society where children come first,
through the provision of support so that residents canfeel more secure about having and raising children, andthe fostering of talent for the future.

Key new andexpanded projects● Support for egg freezing● Lighten the burden of expenses for school meals● Actually tuition free at metropolitan and private highschools, etc.
etc.

9Financial and economic city
creating innovation

JPY 501.3 bn

We will support startups and encourage SMEs to take onchallenges, and realize a city where innovation is bornand continues to grow.

Key new andexpanded projects

主な新規拡充事業● Operation of Tokyo Innovation Base
● Public-private impact growth fund (provisional name)● DX promotion support project for SMEs
etc.

10

World city of choice full ofa wide variety of attractions

JPY 485.5 bn

We will fully utilize Tokyo’s potential, including its green
spaces, communities, and culture, and realize a city

brimming with attractions.

Key new andexpanded projects● Strongly promote Tokyo Green Biz● Host “SusHi Tech Tokyo 2024”● Promotion project of the nature experience
tourism enjoyable for everyone
etc.

11

The World’s Safest, Most
Secure and Resilient CityJPY 897.4 bn

We will realize a safe, secure, and resilient city with aquality health care and other systems, where the lives
and livelihoods of the residents are protected fromdisasters such as enormous earthquakes and floods.

Key new andexpanded projects● Promoting the removal of utility poles● Small and medium-sized river development● Promotion of apartments easy to keep life evenin the event of a disasteretc.

12Respond to the climate crisis
and acceleratedecarbonization

JPY 222.8 bn

By promoting energy conservation and accelerating theuse of renewable energy, we will achieve “Carbon-Half”
by 2030 and Zero Emission Tokyo beyond that.

Key new andexpanded projects● Perovskite solar cell social implementation promotion
project● At-house zero emission action promotion project● Green hydrogen production and utilization project
etc.

13

Promotion of “Smart Tokyo”
and “Shin-Tosei” (StructuralReform of the TMG)

JPY 175.7 bn

The quality of Tokyo’s administrative services will beenhanced through deepening service reform using digitaltechnologies, such as the realization of a “connected Tokyo.”

Key new andexpanded projects● Promotion of children DX such as a one-stop support
for daycare center admission, etc.
● Procedure simplification project● Construction and operation of the regional digitalcurrency platform "Tokyo Tokyo
Point (provisional name)“etc.

14Promotion of the Tamaarea and the Tokyo islands

JPY 263.3 bn

In order to raise the vitality and appeal of the Tama andthe Tokyo islands and achieve sustainable development,
we will promote initiatives that leverage the resources
and unique characteristics of the communities.

Key new andexpanded projects● The Tama area and the Tokyo islands regional interaction
workcation experience tour
● Promotion campaign for attracting guests tothe Tama area
● Development of activities at cruise
ship ports in the Tokyo islands
etc.

15

Revenues and Expenditures(General Account)

Revenues
CategoryF Y 2 0 2 4

F Y 2 0 2 3

Difference

Metropolitan taxes

6,386 bn

6,201 bn

185 bnLocal transfer taxes

64 bn

67 bn ー

3 bn

National treasury
disbursements

379 bn388 bn ー

10 bnFunds transfers

715 bn502 bn213 bnTMG bonds

313 bn291 bn

22 bn

Other revenues

597 bn592 bn

5 bn

Total

8,453 bn

8,041 bn

412 bnF Y 2 0 2 4

F Y 2 0 2 3

Difference

General expenditures

6,370 bn

5,935 bn

435 bnOrdinary
expenditures

5,298 bn

4,908 bn

390 bnSalary-relatedexpenses

1,723 bn

1,624 bn

99 bn

Other ordinary
expenditures

3,575 bn

3,284 bn

291 bnInvestment expenses

1,072 bn

1,028 bn

44 bn

Expenses for public bonds

324 bn344 bn ー20 bn

Tax-related expenses, etc.

1,759 bn1,761 bn ー

2 bn

Total

8,453 bn

8,041 bn

Expenditures
Category

412 bn*Tabulated figures are rounded to the nearest billion.

16

form should the local tax
Column Whatand fiscal system take?
■ Money that can be used
for one resident
 When grants provided by the national

Am ount s of gen eral rev enu e
resources per capita
Local taxes

Local allocation tax grants,etc.

Same level as
the average ofprefectural
governments

Approx. halfthat of the top
government to cover tax revenue
prefecture
disparities among local governments areadded to each local government’s tax
revenues, the amount of money that canbe used for one resident in Tokyo is at
about the average of prefectural

TMG

governments and is definitely not high.

Average ofTop
prefecturalprefecture governments■ Local Corporate Taxation Reviews
 Despite this fact, through unreasonable revisions of the system up tonow, Tokyo’s tax revenues amounting to 1.3 trillion yen in FY 2024—awhopping total of 9.2 trillion yen since FY 2008—have been taken awayfrom Tokyo.

Just how much is 9.2 trillion yen?
Almost equal to expenses for earthquake
countermeasures taken by the TMG up to the 2040s.

Taxes per Tokyo citizen of about 100,000 yen annually andabout 700,000 yen on a cumulative basis have been lost!
 Rather than having local governments scramble for a larger share of thelimited financial resources, it would be more important to have a tax andfiscal system that considers the roles that local governments should playfor the sustainable growth of all of Japan.

We need a tax andfiscal system thatfacilitates the growth

17of all of Japan!

Thorough initiatives to reduce
Column unnecessary spending
There are an increasing number of matters tobe addressed, such as countermeasures against
the low birth rate and earthquakes. How does

TMG finance these countermeasures?
The TMG makes efforts to reduce
unnecessary spending in preparation for
the future!
 In order to ensure the fulfillment of the mission imposed on the TMG withlimited financial resources, we have been striving to improve the efficiency
of projects and strengthen initiatives to reduce unnecessary spending.

Financial resources secured

 We secured financial
sources of approx. 810.0

Approx. JPY 810 bnJPY 126.6 bnbillion yen cumulativefrom FY 2017 throughinitiative for projectreviews.

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

 Regarding budget requests for projects that need to be reviewed, bysetting the maximum request at an amount lower than the previous fiscal

year what is called “minus-ceiling”, each department is encouraged
to review projects voluntarily.

It is important to continuously makeefforts to reduce unnecessary pending.

18

Reference: Breakdown by
Categories (General Account)
FY2024 budget by category, assuming thatthe total budget is 10,000 yen
Breakdown of
10,000 yen

Category
Health and Welfare
e.g., measures to address the fallingbirthrate and the graying population

1,905yen

Education and Culture
e.g., the enhancement of school education

1,654yenLabor and Economye.g., revitalization of industry

842yenLiving Environmente.g., climate change countermeasures

408yenUrban Developmente.g., road development

1,081yen

Police and Firefighting
e.g., police and fire fighting activities

1,138yen

Planning and General Affairse.g., staff training and welfare

508yenPublic Bonds
e.g., principal and interest redemptionof TMG Bonds

383yenTax-related Expenses, etc.
e.g., subsidies to municipalities

Total

2,081yen
10,000yen※ Figures are rounded off to the nearest one yen.

19

I think I now understand Tokyo’s budget.
While using a lot of ingenuity, Tokyo isadvancing efforts to become an evenbetter city!
That’s right, Hari! Tokyo has to keep onfirmly managing its finances. And it’s notjust for us, but for the future of ourchildren!

That’s so true! Now, I want to learn
more about what other initiatives
Tokyo is taking!

Hari, you’re so earnest! I reallyadmire that in you.
You can find more information on theTMG website.
Check here

※ All works in this brochure (text, photos, illustrations, etc.) are subject to protection
under copyright law. With the exception of cases that do not require the permissionof the copyright owner under copyright law, none of the works can be duplicatedor reproduced without permission.
The Guide to Tokyo’s FY2024 Budget proposal (issued March 2024)
Edited and issued by the Finance Section, Budget Division, Bureau of Finance,
Tokyo Metropolitan Government (Phone: 03 (5388) 2669)