Fiscal System Subcommittee discusses infrastructure: maintenance costs estimated at 15.2 trillion yen in 20 yearsPlain-language (teen-friendly): roads and bridges are getting old — repairs may cost 15 trillion yen in 20 years
On November 5, 2026 (Reiwa 8), the Ministry of Finance held a meeting of the Fiscal System Subcommittee of the Fiscal System Council (3:00 p.m. to 5:00 p.m.) with "Infrastructure Development" and "Defence" on the agenda. Material 1, "Infrastructure Development," presents an estimate that total maintenance costs for the nation's infrastructure stock will rise from 9.3 trillion yen in fiscal 2025 to 15.2 trillion yen in fiscal 2045, and argues that the total volume of stock should be held down by rationalising and standardising basic specifications. The material also sets out the overall shape of the fiscal 2027 budget request for public works.
Key points
- On the estimate: if the current pace of development continues, total maintenance costs for the whole infrastructure stock rise from 9.3 trillion yen in fiscal 2025 to 15.2 trillion yen in fiscal 2045 (about 1.6 times). Per person of working-age population, the figure goes from 127,000 yen to 261,000 yen (about 2.1 times)
- The share of infrastructure more than 50 years old is given as about 42 percent in 2025 rising to about 75 percent in 2040 for road bridges, and from about 10 percent to about 40 percent for water supply pipes
- The fiscal 2027 budget request for public works expenditure is 8.7265 trillion yen for general public works plus 61.8 billion yen for disaster recovery, a total of 8.7883 trillion yen, with further items to be requested later. The fiscal 2026 initial budget of 6.1078 trillion yen plus the fiscal 2025 supplementary budget of 2.5420 trillion yen comes to 8.6498 trillion yen
- In international comparison, Japan's public fixed capital stock relative to GDP is the highest at 117.6 percent, and its road length per unit of land area also ranks first among the G20 (364 kilometres per 100 square kilometres)
- The directions presented are: rationalising and standardising basic specifications (consolidating little-used roads and bridges, reviewing road paving, decentralised water supply, standardising the specifications of vessels on the 130 remote-island routes nationwide); introducing cross-sector evaluation in place of evaluation by individual field; and setting a strategic investment framework with key performance indicators and exit criteria for the shipbuilding industry's goal of doubling output by 2035
What to do in practice
- If your company takes on public works, check whether the directions set out in Material 1 — rationalising and standardising basic specifications, and reviewing how new projects are adopted — touch the fields you work in
- Follow the fiscal 2027 budget process through to the end of the year and build only confirmed decisions into your plans
On November 5 a Ministry of Finance council discussed how Japan should look after its roads, bridges and water pipes from now on. According to the material presented, if things carry on as they are, the money needed nationwide for repairs and inspections will rise from 9.3 trillion yen in fiscal 2025 to 15.2 trillion yen in fiscal 2045. Per person of working age that is 127,000 yen rising to 261,000 yen, roughly double. The material therefore argues that the number and size of things being built should be held down.
Points
- If things carry on as they are, repair and inspection costs rise from 9.3 trillion yen to 15.2 trillion yen over 20 years
- Road bridges more than 50 years old were about 42 percent in 2025 and are expected to be about 75 percent in 2040
- The material suggests holding down the total: consolidating roads and bridges that few people use, and building water supply in smaller, decentralised pieces
What the words mean
- Infrastructure
- Things built for everyone to use, such as roads, bridges, water supply and ports
- Maintenance
- Inspecting and repairing something so it does not break and can keep being used
- Working-age population
- The number of people aged 15 to 64, the ages at which most people work
- Ministry of Finance (MOF): Ministry of Finance, Fiscal System Subcommittee (meeting of November 5, 2026) — list of materials
- Ministry of Finance (MOF): Ministry of Finance, Fiscal System Subcommittee, Material 1 "Infrastructure Development" (November 5, 2026)
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