FY2026 Local Finance Council Meeting Summary (September 8)
Overview
The Local Finance Council received an explanation of the support package for the 2026 Kumamoto Earthquake and measures to address local governments’ fiscal burden. It asked about the size of reconstruction funds, the treatment of reserve funds and supplementary budgets, and the support framework for future disasters of comparable scale. The explanation cited responsive and flexible fiscal measures tailored to conditions in affected areas as the reason to use reserve funds first for recovery and reconstruction. Responses to future disasters will be considered in light of the damage and specific circumstances at the time.
Key points
- The reconstruction funds were reported at approximately 54 billion yen for the Noto Peninsula Earthquake and approximately 52.3 billion yen for the 2016 Kumamoto Earthquake.
- For recovery and reconstruction after the 2026 Kumamoto Earthquake, reserve funds would be used first to enable responsive and flexible fiscal measures.
- Responses to future disasters will be considered in light of the damage and specific circumstances at the time.
Overview
The Local Finance Council received an explanation of the package for supporting the lives and livelihoods of people affected by the 2026 Kumamoto Earthquake and measures to address local governments’ fiscal burden. The agenda included consideration based on the local fiscal measures for the reconstruction fund established by Kumamoto Prefecture after the 2016 Kumamoto Earthquake.
After the explanation, the council held questions and discussion on the size of past reconstruction funds, the appropriateness of using reserve funds for earthquake response, and the possibility of applying a similar support framework to future disasters of comparable scale.
Details
In response to a question about fund size, the figures including lottery grant revenue were approximately 54 billion yen for the 2024 Noto Peninsula Earthquake and approximately 52.3 billion yen for the 2016 Kumamoto Earthquake.
Reserve funds were described as a system for covering unforeseen budget shortfalls. For recovery and reconstruction after the 2026 Kumamoto Earthquake, the explanation said reserve funds would be used first to ensure a full response through responsive and flexible fiscal measures suited to conditions in affected areas. During the discussion, some argued that a supplementary budget would be more appropriate, given that reserve fund measures have become established in earthquake responses and similar situations.
The support measures were explained as reflecting circumstances specific to the 2026 Kumamoto Earthquake, including repeated impacts from multiple disasters. Responses to future disasters will be considered in light of the damage and specific circumstances at the time.