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Nov 5, 2026 Ministry of Finance (MOF) Economic news (Japan & world) Under consideration (not final)

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.

Estimated maintenance costs for the whole infrastructure stock
Fiscal 2025Fiscal 2045
Total9.3 trillion yen15.2 trillion yen (about 1.6 times)
Per person of working-age population127,000 yen261,000 yen (about 2.1 times)

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
Who is affected: Owners of construction, civil engineering, equipment and shipbuilding companies involved in public works or in maintaining and renewing infrastructure, and companies whose business plans rely on local infrastructure

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
Note: This article describes the material and agenda that the Ministry of Finance presented to the Fiscal System Subcommittee. It is input for the council's discussion and has not been decided as policy or as a budget. Whether it will be adopted, and whether its content or timing will change, is not known at this point. The estimated figures rest on the assumptions set out in the material, such as no price changes from fiscal 2026 onwards.

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.

Share that is more than 50 years old
Road bridges (2025)42%
Road bridges (2040)75%
Water supply pipes (2025)10%
Water supply pipes (2040)40%

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
For example: When a house gets old, the bills for fixing the roof and the plumbing keep growing. And if the family gets smaller, each person has to pay about twice as much. The material says the same thing is happening with the country's roads and bridges.

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

This article previews items that are still under consideration or only requested. Whether they will be adopted, and whether the content or timing will change, is not final. Please check the official source again once a decision is made.

Economic news presents published statistics and outlooks. It is not investment solicitation or trading advice. Figures are as of publication and may be revised.

This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.

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