Tokyo 2020 has revealed the details of its version five budget following the postponement of the Olympic and Paralympic Games in the Japanese capital. Tokyo 2020 chief executive Toshirō Mutō has been present at the press conference.
Details were confirmed for the Tokyo 2020 Organising Committee budget and the “other entities” budget for the Tokyo Metropolitan Government and Japanese Government during the said press conference, revealed exclusively the Inside the Games Tuesday (22).
It followed thus:
The version five budget reflects the postponement of the Games due to the Covid-19 pandemic and the subsequent reduction of expenses arising from simplification measures devised by Tokyo 2020, the International Olympic Committee (IOC) and the International Paralympic Committee.
Compared to the version four Organising Committee budget, total expenses have increased by $ 900 million (Rs. 171 billion) - including $ 300 million (Rs. 57 billion) for Paralympic expenses - to a total of $ 6.7 billion (Rs. 1,274.4 billion).
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Tokyo 2020 chief executive Toshirō Mutō revealing the details of the version five budget[/caption]
$ 700 m extra expenditure for postponement
The budget, which already includes a significant contribution from the IOC, has predicted a revenue increase of $ 700 million which will help cover the additional expenditure from the postponement of the Games.
If they cannot be covered by Tokyo 2020, a further $ 100 million of additional expenditures will be met by the Tokyo Metropolitan Government.
The Organising Committee budget includes $ 1.2 billion of temporary and overlay facility expenditures, an increase of $ 300 million over the version four budget, operational expenditures of $ 1.6 billion, an increase of $ 400 million, and general affairs and communication expenditures of $ 800 million, an increase of $ 200 million.
Overall expenditure is Rs. 2,929 billion
In the “other entities” budget, the Tokyo Metropolitan Government is set for a total expenditure of $ 6.6 billion an increase of $ 100 million from the version-four budget.
This includes an increase of $ 100 million for the Paralympic Games and $ 400 million to cover the cost of Covid-19 countermeasures.
The Japanese Government is expected to spend $ 2.1 billion on the Games, an increase of $ 700 million from the version-four budget, including an additional $ 100 million for the Paralympics budget and $ 500 million to cover Covid-19 countermeasures costs.
Including the Organising Committee budget of $ 6.7 billion, the overall Games expenditure will now total $ 15.4 billion (Rs. 2,929 billion).
Cost cutting
This comprises the $ 12.6 billion forecast in the version-four budget, plus the Organising Committee’s contingency fund of $ 300 million and the additional costs due to the Covid-19 pandemic of $ 2.5 billion, including $ 600 million of additional Paralympic Games costs.
The Olympics are now scheduled from 23 July to 8 August and are set to be followed by the Paralympics from 24 August to 5 September.
Measures introduced to reduce costs include a cut to the number of officials attending the Games, infrastructure reforms that will reduce the amount of lighting and additional temporary power supplies for venues, and the elimination of ceremonies at the Athletes’ Village and prior to the Opening Ceremony.