Okinawa FY2027 budget request set at 289.7 billion yen

The Cabinet Office has set the preliminary budget request for Okinawa for fiscal year 2027 at 289.7 billion yen. This represents an increase of 6.8 billion yen from the fiscal 2026 request and 25 billion yen compared to the initial budget.

The increase is attributed to government policies aimed at incorporating supplementary budgets into initial budgets and the ‘Strong and Prosperous Japan’ investment framework, which supports AI development. Specific allocations include 1.1 billion yen for physical AI development to address labor shortages in food manufacturing and tourism, and 100 million yen for projects demonstrating quantum computing applications, involving institutions such as the Okinawa Institute of Science and Technology (OIST).

However, the request falls short of the 300 billion yen level sought by the prefecture. While the ‘lump-sum grant’—which allows local governments more autonomy in spending—increased to 78.3 billion yen, it remains less than half of its peak levels. Additionally, discussions regarding the ‘Gateway 2050 Projects’ for developing former military base lands remain a key focus for regional economic planning.