Japan launches a DOGE-inspired government office to cut budget waste and review spending, aiming to ensure fiscal sustainability amid a massive stimulus package.
TOKYO: Japan has launched a new government office inspired by the US Department of Government Efficiency (DOGE) to cut budget waste and review spending programmes.
Finance Minister Satsuki Katayama unveiled the initiative, stating “there is high public interest in reducing waste” and that fiscal sustainability is “paramount”.
The Office in Charge of Reviewing Special Tax Measures and Subsidies will be staffed by about 30 government officials and will not aim to overhaul government organisations.
It will specifically review programmes with low policy impact, according to the finance minister.
The launch comes amid concerns over a 21.3 trillion yen (RM645 billion) stimulus package approved last week by Prime Minister Sanae Takaichi’s government.
Takaichi has defended the massive spending plan, insisting it was fiscally responsible despite fears it would worsen Japan’s colossal debt burden.
The new office is expected to become fully functional next year, with its impact reflected in the budget for the fiscal year starting from April 2027.
The initiative forms part of a month-old coalition agreement between Takaichi’s ruling Liberal Democratic Party and their junior partner, the Japan Innovation Party.
Expectations of increased government spending have pushed yields on Japanese government bonds to record highs this week and put pressure on the yen.
The US DOGE, headed by Elon Musk, sent teams of tech experts to systematically dismantle and disrupt the nation’s more than two million-strong civil service.
However, the Japanese version will operate differently, focusing on reviewing existing programmes rather than overhauling government structures.
