OECD Journal on Budgeting

The OECD journal on public sector budgeting, published three times per year. It draws on the best of the recent work of the OECD Working Party of Senior Budget Officials (SBO), as well as special contributions from finance ministries, and makes it available to a wider community in an accessible format. The journal provides insight on leading-edge institutional arrangements, systems and instruments for the allocation and management of resources in the public sector. Now published as a part of the OECD Journal subscription package.

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Economic and fiscal management under the Democratic Party of Japan (DPJ) administration

Japan experienced a major change of government in September 2009. It was a remarkable political event, because Japanese politics was dominated by the Liberal Democratic Party (LDP) in almost all the years following the end of World War ll. The new coalition government led by the Democratic Party of Japan (DPJ) tried to overhaul and restructure public administration and policy making in order to strengthen political leadership. In particular, they wanted to reform budgetary institutions as they fully recognised the LDP governments’ wasted public money that brought about huge fiscal deficits. They introduced new medium-term fiscal targets and planning, programme reviews, and tax expenditure report, and legislated laws to increase the rate of consumption tax from 5% to 10%. However their reforms were not successful as expected and ended in larger fiscal deficits. This paper analyses the economic and fiscal management of the DPJ Administration and why they couldn’t succeed in reforming budgetary institutions.


Keywords: ageing, programme review, medium-term fiscal planning, Japan, budgeting, fiscal discipline
JEL: D73: Microeconomics / Analysis of Collective Decision-Making / Bureaucracy; Administrative Processes in Public Organizations; Corruption; H61: Public Economics / National Budget, Deficit, and Debt / National Budget; Budget Systems; H83: Public Economics / Miscellaneous Issues / Public Administration; Public Sector Accounting and Audits; H50: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Related Policies: General; D72: Microeconomics / Analysis of Collective Decision-Making / Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior; H62: Public Economics / National Budget, Deficit, and Debt / National Deficit; Surplus
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