Before Tokyo governor Yuriko Koike came on the scene, the projected overruns for the 2020 Tokyo Olympic budget was expected to take the overall budget to USD30 billion.
Soon after Governor took office, she stated she was determined to cut that budget down to size, vowing not to strap Tokyo taxpayers with any “white elephants”. In partnership with the International Olympic Committee, which feared that ballooning costs would further discourage cities from bidding for Olympics in the future, Koike began asking a lot of questions about the budget.
The IOC then encouraged that a four-party group be created to drive the budget down. For the past year, members of the IOC, Tokyo 2020, Governor Koike and representations from the Japanese national government have been working to ensure a budget of USD15 billion or less. On May 31, 2017, Tokyo2020 organizers that the budget has been reduced to USD12.9 billion, according to Around the Rings.
In comparison to another mature city, the 2012 London Olympics ended up costing USD19 billion.
One of the major hurdles of finalizing the budget was determining who would fund the construction of temporary facilities in venues outside Tokyo, where events like baseball and soccer would be played, for example. In the recently agreed-upon budget, local governments in seven prefectures (Hokkaido, Miyagi, Fukushima, Saitama, Chiba, Kanagawa and Shizuoka) and four cities (Sapporo, Saitama, Chiba and Yokohama) will pay only for costs related to “medical services and security transportation to and from venues, but that Tokyo will cover costs for temporary facilities for venues outside of the Japanese capital”, according to Inside the Games.
Another potentially very good decision by the four-party task force, according to this Tokyo 2020 document, was to create a committee made up members of the four parties to monitor costs. This Management Committee for Collaborative Projects will look to optimize resources and further reduce costs with reviews held on a regular basis.