Hyogo Prefecture designated as debt issuance permission group

Hyogo Prefecture has officially become a “debt issuance permission group,” a status triggered when the three-year average real debt service ratio exceeds 18%. The prefecture's ratio reached 19.2%, meaning it now requires permission from the national government to issue local bonds. This is the first time in 14 years that the prefecture has faced such a designation.

While tax revenues have reached record highs, the fiscal deterioration is attributed to the heavy burden of repaying past debts, including reconstruction costs from the Great Hanshin-Awaji Earthquake and infrastructure investments. A specific controversy has also emerged regarding the 2020 administration under former Governor Toshizo Ido, involving an improper 33.8 billion yen debt refinancing process that the prefecture itself identified as potentially violating the Local Finance Act.

During a recent press conference addressing the fiscal crisis, Governor Motohiko Saito faced criticism from reporters for failing to provide concrete reconstruction plans. Instead of detailing fiscal reforms, the Governor discussed his personal interest in the “Chiikawa” animation series, which drew sharp rebukes from journalists regarding his perceived lack of seriousness toward the prefecture's financial emergency.