Japan Sets Up Own Version of DOGE to Cut Waste

Tokyo, Nov. 25 (Jiji Press)–The Japanese government on Tuesday said that it has set up a new office to review tax breaks and subsidies for businesses to reduce wasteful spending, a Japanese version of the U.S. Department of Government Efficiency, led by billionaire entrepreneur Elon Musk. The move is part of a coalition agreement between Prime Minister Sanae Takaichi’s ruling Liberal Democratic Party and Nippon Ishin no Kai (Japan Innovation Party). Government funds set aside for specific projects will also be subject to the review by the new office. Part of the results of the screening will be reflected in the Japanese government’s budget and tax reform package for fiscal 2026, which begins in April next year. The new office with a staff of about 30 is overseen by Finance Minister Satsuki Katayama, an LDP lawmaker, and Takashi Endo, Nippon Ishin’s parliamentary affairs chief who serves as special adviser to the prime minister. “We’ll seek opinions from a wide range of people,” Katayama said at a press conference. The office will hold its first meeting as early as next week. The review is part of an effort by Takaichi, who advocates “responsible and proactive” fiscal policy, to abolish tax breaks and subsidies for businesses that lack efficacy. Tax breaks for businesses led to a decrease of about 2.9 trillion yen in tax revenues in fiscal 2023. The business community is strongly opposed to a cutback in these incentives. The balance of government funds for specific projects stood at around 16.6 trillion yen at the end of fiscal 2022. They have been criticized as a hotbed of wasteful spending, due to the lack of clarity over their purpose and the large surpluses they hold. The government abolished 15 programs in fiscal 2024. END [Copyright The Jiji Press, Ltd.]