Fiscal Consolidation Strategy in Japan: The Role of Expenditure Control
10 Pages Posted: 14 Feb 2012
Date Written: March 29, 2007
Kajikawa examines the role of public expenditure control in Japanese fiscal consolidation. After outlining recent fiscal developments, he discusses the control of two types of expenditure: project and programme. The former comprises investment and current spending for the implementation of specific projects, the latter social protection and health care. Capping can be effective for project spending, since a limit to disbursement can be set in the budget process. The dynamics of programme type expenditures can only be modified by changing the design of the programmes themselves.
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