The initiative aims to review subsidies, inefficient state programs, reduce spending, and eliminate waste
The official emphasized that this is a long-awaited measure by the public: "The public is very interested in eliminating waste and reviewing projects. It would be very useful to request as many opinions as possible on what is considered waste, which subsidies are unusual, and which tax exemptions are deemed unnecessary," she stated during a press conference.
The new Government of Japan has launched a deep reform aimed at optimizing the use of public funds and ensuring that every state expenditure serves a clear and efficient function.
The initiative, already compared to Argentine President Javier Milei's "chainsaw plan," aims to review subsidies, tax exemptions, and state programs considered ineffective, in a decisive move toward more transparent and fiscally responsible management.
The project is led by Finance Minister Satsuki Katayama, who heads the new Office for the Review of Special Fiscal Measures and Subsidies, an agency created to audit and reform state spending policies.
The new agency will have a team of approximately 30 specialists who will evaluate government programs whose effectiveness is in doubt, according to public broadcaster NHK. The mission of this group will be to identify waste, unnecessary expenses, detect structures that require modernization, and propose alternatives that will allow the state to be more agile, austere, and efficient.
The creation of this office was a key condition set by the Japan Innovation Party (Ishin) to seal the governing coalition with the Liberal Democratic Party (LDP), an agreement that facilitated Sanae Takaichi's appointment as prime minister in October. With this addition, the Japanese government is sending a clear signal of its commitment to a more orderly and austere administration.
The technical team's conclusions will be incorporated into the fiscal year 2027 budget, which will begin in April of that year. This way, Japan is preparing for a deep redesign of its spending structure, with a strategic focus on reducing unnecessary costs.
