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

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.