Tokyo 2020 slashes budget to $17 billion

TIL Desk Sports/ Tokyo Olympics organisers unveiled a smaller budget of up to USD 17 billion after coming under pressure to cut ballooning costs. The figure, down from last month’s pledge to cap expenditure at USD 17.78 billion, follows warnings that the bill for the 2020 Games could soar as high as USD 30 billion. Organising committee chief executive Toshiro Muto yesterday said the entire Games budget will be between 1.6 trillion and 1.8 trillion yen, which he put at USD 15-16.8 billion.

Under the latest exchange rate, the same yen figure is worth USD 13.6-15.3 billion. This year’s Rio Games cost USD 12 billion, while London 2012 came USD 13.7 billion under the exchange rate of the time. Yeterday’s figure, the most complete budget yet for Tokyo 2020, comes after officials scrambled to slash the costs of building some Olympic venues. It was revealed at talks between the Games’ organisers, the International Olympic Committee (IOC) and the Tokyo and national governments, who are meeting regularly to try to cut costs.

“This does give the overall picture,” IOC vice-president John Coates said by videolink from Sydney. “We are pleased with the progress you are continuing to make,” he said, adding: “We think that we can work with you to find… more savings.” Tokyo governor Yuriko Koike, who was elected this year vowing to bring down costs, said some 40 billion yen would be saved after a review of the canoeing, volleyball and swimming venues.