23 Dec 2017

Tokyo Olympics down $430m, more cuts eyed

6:32 am on 23 December 2017

Organisers have unveiled a $18 billion budget for the Tokyo 2020 Olympic Games, a $430 million reduction from earlier projections, and are targeting more cuts to reduce the burden on Japanese taxpayers.

Tokyo 2020 Olympics.

Tokyo 2020 Olympics. Photo: PHOTOSPORT

Games organisers have been working to slash costs after a study last year had warned expenses could balloon to four times the initial estimate made in the bid process.

The International Olympic Committee (IOC) is keen for Tokyo to set a good example by cutting costs to attract future candidate cities.

"We want to deliver fantastic Games but, at the same time ... we don't want to use any public funds if we can help it," Tokyo 2020 chief financial officer Hidemasa Nakamura said on Saturday (NZ time).

"We will continue to try to reduce (costs) further."

The Tokyo Metropolitan Government accounts for $8 billion of the latest budget and Japan's central government $2 billion, according to the organisers' estimates.

"We are still looking at the overall Games with the big purpose of reducing costs overall and, in the process, we need a clear explanation that is compelling, not just for Tokyo citizens but for all Japanese citizens," Tokyo Metropolitan Government official Tetsushi Koyama said.

Version one of the budget, issued last December, was projected at $20 billion. Version three is due out in December 2018.

IOC vice-president John Coates said earlier this month he was confident significant savings would be achieved ahead of the Games but warned organisers needed to remain vigilant.

Nakamura said he wanted to create a plan that would prompt Coates to say: 'You've done a good job'.

"I think there is a need to shrink costs further in version three and continue that in version four," Nakamura said.

- Reuters