2020 Tokyo Summer Olympics unveils budget cuts

Courtesy: Twitter (@Tokyo2020)

Tokyo 2020 organizers Friday unveiled a "significant" cut in their budget for hosting the games, as the city comes under pressure to keep a lid on spiraling costs.

The overall games' budget now stands at a total of 1.35 trillion yen ($12.6 billion) organizers said in a statement.

This represented a cut of $1.4 billion compared to the previous version of the budget unveiled last December and $0.3 billion compared to an interim figure agreed in May.

"Going forward, Tokyo 2020 will continue to seek further cost reductions, particularly in the areas of event operations, transport, accommodation and security," organisers said in a statement.

They hailed a "significant reduction in costs" resulting from "sustained efforts ... to avoid recourse to public funds."

The Tokyo 2020 organising committee will cover $5.6 billion of the costs, with the Tokyo city authorities and the Japanese government stumping up $7.0 billion between them.

The $5.6 billion organising committee budget is covered by ticket sales, licensing and sponsorship and the statement hailed an increase of $0.9 billion in sponsorship revenue.

However, Tokyo 2020 admitted it still needed to find $0.2 billion in "expected additional revenue" to balance the books and vowed it would "continue to look at ways" to secure the extra funding.

Tokyo organisers are under pressure to keep costs down, with the International Olympic Committee worried that ballooning price tags for hosting the games will deter cities from bidding for the showcase event.

The rollout of the centrepiece Olympic stadium turned into a fiasco when Prime Minister Shinzo Abe tore up the blueprints amid public anger over its price tag.