The Tokyo 2020 Olympic and Paralympic organizing committee and the Tokyo metropolitan government released a second budget plan Friday saying the estimated cost of hosting the games has been reduced to 1.35 trillion yen ($11.9 billion).

The two parties have agreed to cut 35 billion yen ($309 million) from the amount agreed in May, with the organizing committee and the Tokyo metropolitan government each contributing 600 billion yen and the central government's burden being 150 billion yen.

While a combined 65 billion yen was slashed between transport costs and construction costs for temporary facilities, an extra 30 billion yen was newly added as operational costs.

"I think we can say we've completed the budget framework. We'll continue to work hard on cost-cutting efforts," said Hidemasa Nakamura, the chief financial officer of the 2020 Games.

In May, local governments outside Tokyo that will host competitions agreed on basic principles concerning cost sharing, but they will no longer have to shoulder hosting expenses, according to the latest budget plan.

However, each municipality will be responsible for using administrative expenses to cover running costs including security.

In the initial budget plan announced last December, organizers had estimated the total cost to host the 2020 Games to be around 1.5 trillion yen, excluding reserve funds.

The International Olympic Committee has repeatedly urged Tokyo to cut the Games' budget, and IOC vice president John Coates said during his visit to Tokyo in October the IOC needs to see cuts of $1 billion from the $12 billion budget.