DOGE rises 5.58% over 24 hours following Japan’s introduction of a reform unit focused on efficiency

Market Update: DOGE Performance Overview

As of December 2, 2025, DOGE experienced a 5.58% increase over the previous 24 hours, reaching a value of $0.14177. However, the cryptocurrency saw a decline of 6.3% over the past week, a 2.03% drop in the last month, and a significant decrease of 54.74% compared to the previous year.

Japan Unveils New Government Efficiency Department

On December 2, Japan officially introduced its Department of Government Efficiency (DOGE), an initiative designed to enhance fiscal management by reassessing and potentially eliminating outdated tax incentives and subsidies. During the department's first meeting, government leaders presented a strategy to thoroughly audit current fiscal benefits, aiming to reallocate resources toward more critical national priorities.

Finance Minister Taro Aso highlighted the significance of this reform, stating that the DOGE initiative would set the current administration apart by reducing unnecessary spending and reallocating funds. “By minimizing waste and optimizing resource distribution,” Aso remarked, “we reinforce our dedication to upholding confidence in our nation, its currency, and financial markets.”

Aligning Fiscal and Monetary Policies

Aso further pointed out that the DOGE program is in harmony with the economic outlook shared by Bank of Japan Governor Haruhiko Kuroda, who has recently suggested the possibility of raising interest rates. He emphasized that the government and the central bank are presenting a united front, ensuring consistency between fiscal and monetary strategies.

Minoru Kiuchi, Minister of State for Economic Growth Strategy, supported Aso’s comments, noting that close collaboration between the government and the Bank of Japan is crucial for maintaining market stability. This coordinated approach is seen as vital for sustaining investor trust amid global economic uncertainties and tighter monetary conditions.

Reform Plans and Public Involvement

According to local news sources, the first DOGE meeting brought together top officials, including Chief Cabinet Secretary Kihara and Minister for Administrative Reform Matsumoto. The discussion centered on reviewing long-standing tax policies and subsidies that may no longer serve their intended purposes.

To foster greater transparency and public trust, Finance Minister Katayama revealed that the government will seek public input on certain subsidies before the year ends. This approach marks a shift from traditional, top-down fiscal decision-making, signaling a move toward more inclusive and participatory policy development.

Drawing Lessons from the U.S. Model

Japan’s DOGE is partly inspired by the U.S. Department of Government Efficiency, a short-term project led by Elon Musk in 2025. While the American version faced criticism for its largely symbolic efforts and unmet savings targets, Japanese authorities are taking a more systematic, evidence-based approach.

The newly established Office for the Review of Special Tax Measures and Subsidies, operating within the Cabinet Secretariat, is responsible for analyzing hundreds of fiscal incentives. With a team of about 30 experts, the office will use objective criteria to assess the effectiveness of each policy.

Fiscal Pressures and Implementation Timeline

Finance Minister Katayama stressed the pressing need for reform, especially given an anticipated annual budget gap of 1.5 trillion yen, which could result from temporary tax reductions. This financial challenge highlights the importance of thoroughly reviewing existing tax expenditures to identify opportunities for improvement or removal.

Significant policy changes are scheduled to begin in fiscal year 2027, providing ample time for careful evaluation. The government’s objective is to determine which fiscal measures truly contribute to economic progress and which should be phased out.

Summary

The establishment of Japan’s DOGE represents a major advancement in the country’s reform efforts. By prioritizing openness, public participation, and data-driven analysis, the initiative seeks to rebuild trust in government operations and fiscal stewardship. Its ultimate success will hinge on achieving tangible outcomes while balancing diverse stakeholder interests and fiscal realities.