Tokyo: Japan launched its own version of the US government's infamous cost-cutting Department of Government Efficiency (DOGE) on Tuesday in a bid to ease concerns over a $135-billion stimulus package. Prime Minister Sanae Takaichi pledged last week huge government spending to boost the economy, insisting it was fiscally responsible despite fears it would worsen the country's colossal debt burden.
According to Bangladesh Sangbad Sangstha, Japanese Finance Minister Satsuki Katayama emphasized the importance of fiscal sustainability and transparency in government spending. "Given the times we live in, fiscal sustainability is paramount... it is vital that the public can see we are consistently working towards it," Katayama stated during a press briefing. She introduced the initiative, referred to as Japan's DOGE, highlighting the high public interest in reducing waste.
Unlike the US version, headed by Elon Musk, which deploys teams of tech experts to dismantle and disrupt the civil service, the Japanese team will consist of around 30 working government officials. These officials will not aim to overhaul government organizations, but rather focus on reviewing programs with low policy impact, as explained by Katayama. The initiative, formally known as the Office in Charge of Reviewing Special Tax Measures and Subsidies, is part of a coalition agreement between Takaichi's ruling Liberal Democratic Party and their junior partner, the Japan Innovation Party.
The office is anticipated to become fully operational next year, with its impact expected to be reflected in the budget for the fiscal year starting from April 2027. This aligns with Takaichi's defense of the 21.3-trillion yen stimulus package, approved last week, which aims to stimulate growth in the world's fourth-largest economy, alleviate inflationary pressures on households, and restore the ruling party's popularity.
However, the announcement of the stimulus package has led to increased yields on Japanese government bonds, reaching record highs this week, and has exerted pressure on the yen.