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Kumamoto City's fiscal 2026 budget proposal totals ¥437.8 billion, a 4.4% increase from 2025. Spending on semiconductor initiatives will reach ¥1.26 billion, largely due to Taiwan Semiconductor Manufacturing Co.'s planned factory.

The budget includes support for local suppliers and services for foreign residents. Additionally, funding for the Kumamoto streetcar system will nearly double, and municipal tax revenue is projected to rise by 4.9%. Increased bond issuance will finance the budget.