No Elon Here: Japan's 'DOGE' Chooses Bureaucracy Over Disruption

Source: CoinEdition Original Title: No Elon Here: Japan’s ‘DOGE’ Chooses Bureaucracy Over Disruption Original Link: Japan has created a new government team called the Department of Government Efficiency, or DOGE for short. The goal of this new unit is to examine the national budget, remove wasteful expenses and weak subsidies, and redirect that money toward more effective programs.

The timing is important because Japan is preparing a huge new stimulus package and wants to show that it can spend responsibly.

Surgical Cuts vs. ‘Slash-and-Burn’

While the department shares its acronym with the U.S. initiative formerly championed by Elon Musk, the operational mandate is distinctly Japanese.

Finance Minister Katayama emphasized a “micro-surgery” approach, rejecting the mass layoffs and systemic deconstruction that characterized the reportedly shuttered U.S. counterpart.

At the first DOGE meeting, Finance Minister Satsuki Katayama said the department will focus on reviewing tax incentives, national subsidies and other spending that no longer delivers value. She said cutting waste and putting money “where it is truly needed” is necessary to maintain trust in Japan’s currency and financial markets.

“Looking ahead, we need to pay attention to whether price increases will continue and the direction of U.S. trade policy. In addition, given the various fluctuations in global financial and capital markets, we must closely monitor the actions of businesses,” Satsuki said.

Backing Up the PM’s Fiscal Promise

Prime Minister Sanae Takaichi has promoted what she calls an “aggressive but responsible” economic policy. So far, her administration has focused on expansion, approving Japan’s biggest economic support plan since the pandemic and issuing over 10 trillion yen in new debt. DOGE is meant to balance this by proving that wasteful spending can be reduced at the same time.

By the end of the year, the government will open a new system that allows the public to submit suggestions, possibly through social media, on projects they believe should be reviewed or cut.

Cooperation With the Bank of Japan

DOGE’s launch also comes at a time when the Bank of Japan is hinting at a possible interest rate hike. Governor Kazuo Ueda said the central bank will weigh raising rates at its December 19 meeting. The yen has recently fallen to a ten-month low, making imports more expensive and adding pressure on households.

Global markets were hit hard after Japan’s bond yields suddenly jumped to levels last seen in 2008. Bitcoin and altcoins have now slightly recovered, with most of them showing small gains in the past hour and day.