Evidence-based policy making in Japan’s public expenditure: compatibility of fiscal health and investing for the future

ABSTRACT

This article focuses on the introduction of evidence-based policy making (EBPM) in Japan, especially in the context of the Kishida administration’s Grand Design and Action Plan for a New Form of Capitalism. First, the introduction and current situation of EBPM in Japan is summarized. It, consists of three allows: key performance indicators (KPIs), policy evaluation, and administrative project review. These are evaluated and briefly compared to EBPM in the US and UK. Next, investment and expenditure for green transformation proposed in the Grand Design is assessed from the perspective of EBPM, pointing to potential pitfalls and what must be done to ensure wise use of public resources for economic growth and sustainability in the future in Japan. This may serve as a reference for other countries.

KEYWORDS:

• Administrative project review
• evidence-based policy making (EBPM)
• green transformation (GX)
• Japan
• key performance indicators (KPIs)
• plan-do-check-act (PDCA)
• policy evaluation

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. For a comprehensive survey, see Ohtake et al. (2023).

2. For details of administrative project reviews, including the annual schedule, see: https://www.gyoukaku.go.jp/review/review.html accessed 29 October 2023.

3. See: https://analysisfunction.civilservice.gov.uk/ accessed 1 February 2024.

4. The aim of The Office for Budget Responsibility is to provide independent and authoritative analysis of the UK’s public finances: https://obr.uk/ accessed 1 February 2024.

5. The aim of WWN is to ensure that spending and practice in public services is informed by the best available evidence: https://www.gov.uk/guidance/what-works-network accessed 1 February 2024.

Additional information

Notes on contributors

Nobuo Akai

Akai Nobuo, Professor of Public Policy at Osaka University, publishes in the fields of public economics, public policy and finance, local public finance and fiscal and tax policy. He sits on several government panels, including the Financial Policy Council and the Tax Deliberation Council.