While sponsorship from mainland Chinese companies has been reported at approximately ¥4.7 billion, the costs of the Aichi-Nagoya Asian Games have substantially exceeded estimates, and Nagoya expects a ¥92.2 billion budget shortfall in fiscal 2026. The use of a public debt redemption fund to secure funding is also under consideration.
While the Nagoya Asian Games have featured intense competition, operational problems have occurred one after another, costs have surged, and fiscal constraints have become more severe. Event costs have substantially exceeded initial estimates, and Nagoya expects a ¥92.2 billion budget shortfall in fiscal 2026. The impact of large-scale events on municipal finances is once again being questioned, and measuring the economic impact going forward is also becoming more difficult. The government and local authorities cite large economic impacts, but many observers take a cautious view of the actual effects.
The benchmark sponsorship amount from 6 mainland Chinese companies is reportedly equivalent to approximately ¥4.7 billion, while the actual amount, including in-kind sponsorship, has not been disclosed. These sponsorships are said to account for approximately 19% of planned private-sector revenue and have attracted attention as one source of funding. Criticism of the political issues surrounding the sponsorships remains strong.
As a specific funding measure, Nagoya is reportedly planning to borrow approximately ¥45.3 billion from its fiscal adjustment fund. While this could affect part of the city’s education-related spending, the planned 10% expansion of the municipal tax cut was shelved. The prefecture’s economic impact is estimated at ¥1.8177 trillion, but this is an induced production figure and does not necessarily represent net profit or increased tax revenue. Asian Games-related costs are expected to peak going forward, with the effects likely to persist for a certain period.