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Fukuoka’s Fiscal Prosperity: Record Tax Revenue and Urban Development

Fukuoka City is poised to break new ground with its municipal tax revenue expected to exceed ¥370 billion in fiscal 2024, a testament to robust population growth and increased land values spurred by aggressive redevelopment efforts. This surge in revenue is projected to dramatically reduce the city’s per capita debt to less than half of its 2004 peak, signifying a major leap toward fiscal resilience. Mayor Souichiro Takashima has outlined the city’s blueprint for leveraging this financial windfall to enhance the quality of life for its citizens, with a keen focus on childcare, infrastructure improvements, and urban redevelopment.

The city’s ambitious budget for the upcoming fiscal year crosses the ¥1 trillion threshold, earmarking significant funds for the national “Universal Childcare Access System,” the transformation of the Kyushu University Hakozaki Campus, and upgrades to the subway system. These projects are underpinned by a robust base of general funds, heavily supported by an unprecedented spike in municipal taxes, which are forecasted to comprise 34% of the total budget.

The rise in fixed property tax, a direct consequence of escalating land values and stimulated by projects like “Tenjin Big Bang” and “Hakata Connected,” is a key driver of this financial uptrend. Additionally, the recovery of the corporate municipal tax base, buoyed by a rebound in tourism and transportation sectors post-pandemic, further bolsters the city’s fiscal outlook. Despite a minor dip in individual municipal taxes, due to tax reductions, the overall tax base is expanding, further supported by a ¥11 billion special local grant to mitigate revenue shortfalls.

With tax revenue on an upward trajectory, Fukuoka is on course to significantly lower its debt, planning a 10% cut in municipal bond issuance in fiscal 2024. Amid projections of the city’s population reaching its zenith at approximately 1.7 million by 2040, Mayor Takashima highlights the intricate balance required in managing the city’s finances, underscoring the imperative to foster both development and sustainability for the long term. Source: Fukuoka City

Fukuoka's Fiscal Prosperity: Record Tax Revenue and Urban Development

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Fukuoka City
Published: Feb 28, 2024 / Last Updated: Feb 28, 2024

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