The Japanese government says it will shoulder a third of the extra costs for constructing the venue of the 2025 World Exposition in Osaka.

Industry minister Nishimura Yasutoshi and the minister in charge of the Expo, Jimi Hanako, announced the plan at a news conference on Thursday.

The Japan Association for the 2025 World Exposition had previously predicted that the event would cost about 185 billion yen, or about 1.2 billion dollars. But it now projects the figure could rise to around 1.56 billion dollars. That's an increase of about 332 million dollars.

The prefectural and city governments of Osaka and the business community indicated on Wednesday that they will shoulder their shares of the additional outlays.

The construction costs are to be equally split between the central government, Osaka Prefecture and Osaka City as well as private businesses.

The Japanese government is expected to include the necessary expenses in a supplementary budget it plans to submit during the current Diet session.

Nishimura said the government has decided to accept the increased estimate as material and labor costs have increased and further rises are anticipated. He added that the government will work to ensure thorough budgetary management and gain the public's understanding.