Here Comes a New DOGE: Japanese Edition This Time
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Japan’s government held a ministerial meeting to advance a domestic Department of Government Efficiency (DOGE) initiative. The goal is to reform special tax measures and subsidies. Finance Minister Katayama underlined the urgent need for objective metrics to review tax expenditures, especially as Japan faces a projected annual revenue shortfall of 1.5 trillion yen due to potential provisional tax abolitions. Government Establishes Dedicated Reform Office The ministerial meeting included Finance Minister Katayama, Chief Cabinet Secretary Kihara, Minister of Internal Affairs and Communications Hayashi, and Minister for Administrative Reform Matsumoto. According to a local media report, the session focused on reviewing decades-old special tax measures and subsidies. Sponsored Sponsored In November 2025, the Cabinet Secretariat established an Office for the Review of Special Tax Measures and Subsidies with about 30 staff members. This unit will evaluate tax incentives, many of which were designed to improve corporate competitiveness but are now under scrutiny for their effectiveness and lack of precise tracking. At the meeting, Finance Minister Katayama stressed the need for public engagement. Reports noted that he recognized high public expectations and announced a plan to collect citizen feedback on subsidies under review before year-end. Drawing Inspiration From the US Model The Japanese DOGE effort draws on the US Department of Government Efficiency, which entrepreneur Elon Musk led under the Trump administration. In the US, Musk’s approach to bureaucratic reform was highly visible, even using a chainsaw as a symbol to “cut” inefficiency. Yet, after Musk left in May 2025, the DOGE experiment ended, missing its $1 trillion reduction goal despite some budget cuts. Japanese officials seek a more measured process. The plan is for thorough and substantive reform, not theatrical moves. The government must balance the need for fiscal resources with its recent approval of a sizable supplementary budget, increasing tension between…
Filed under: News - @ December 2, 2025 6:27 am