Japan

Public Finance Act (財政法, Zaiseihō) 1947 and Board of Audit Act (会計検査院法) 1947

Public Finance Act (Act No. 34/1947); Board of Audit Act (Act No. 73/1947); Public Accounting Act (Act No. 35/1947); Act on Access to Information Held by Administrative Organs (Act No. 42/1999, in force 2001); Constitution of Japan Arts. 83-91 (Chapter VII Finance, 1947)

Statute text →

Fiscal Transparency: 59/100 (moderate)
59
out of 100
limited
37 of 37 scored fields populated. Higher = stronger statutory transparency requirements.

Japan's fiscal transparency framework rests on a strong constitutional foundation (Arts. 83-91, 1947) with the Public Finance Act (Act No. 34/1947) as the primary budget statute and the Board of Audit Act (Act No. 73/1947) establishing one of the world's most constitutionally entrenched SAIs. The Board of Audit (会計検査院) — independent of Cabinet, Diet, and Courts — requires bicameral Diet consent for commissioner appointments and conducts financial, compliance, and performance audits of all state accounts and subsidized entities. Japan's OBS 2021 transparency score of 61 sits at the bare adequacy threshold, reflecting strengths in budget preparation and audit independence but weaknesses in public participation (score: 20) and audit-stage citizen engagement. Japan has no independent fiscal institution (IFI); the Cabinet Office CEFP (経済財政諮問会議) is an executive advisory body. The Whistleblower Protection Act (2004, amended 2020/2022) covers fiscal irregularity reporting. The Fiscal Investment and Loan Programme (FILP) represents a large off-budget capital financing vehicle (~5-10% of GDP) submitted to the Diet alongside the main budget. Japan has no PEFA assessment (consistent with high-income OECD pattern). Currency: JPY. Fiscal year: April 1 - March 31. OECD member since 1964. IMF member.

Transparency Requirements

Budget Publicationmax 12 pts

Budget publication required ✓ Yes
Budget published online ✓ Yes
Budget publication timeline 90 days before fiscal year
Machine-readable budget format No
Draft budget required before adoption ✓ Yes

Expenditure Disclosuremax 12 pts

Expenditure disclosure required ✓ Yes
Expenditure granularity department
Public expenditure portal required ✓ Yes
Expenditure reporting frequency monthly

Independent Auditmax 12 pts

Audit required ✓ Yes
Auditor independent of entity ✓ Yes
Auditor selection method appointed independent
Audit frequency annual
Audit reports public ✓ Yes
Audit scope financial performance

Contract & Procurementmax 10 pts

Public bidding required ✓ Yes
Contract publication required ✓ Yes
Bid award disclosure No
Beneficial ownership disclosure No

Debt & Liability Disclosuremax 10 pts

Debt disclosure required ✓ Yes
Pension liability disclosure No
Contingent liability disclosure No
Voter approval required for new debt No

Fiscal Reporting Frequencymax 10 pts

Interim reporting required ✓ Yes
Interim reporting frequency monthly
Year-end report deadline 245 days after fiscal year
Citizens budget required No

Enforcement & Oversightmax 10 pts

Non-compliance penalties ✓ Yes
Fiscal oversight body No
Whistleblower protections ✓ Yes
Legislative budget office No

Revenue & Tax Transparencymax 8 pts

Tax expenditure reporting No
Revenue forecasting required ✓ Yes
Tax rate publication ✓ Yes
Fee schedule publication ✓ Yes

Compensation & Payrollmax 8 pts

Salary disclosure required No
Salary disclosure scope
Pension benefit disclosure No
Overtime reporting No

Capital & Asset Disclosuremax 8 pts

Capital plan required ✓ Yes
Asset inventory required No
Surplus asset disposal transparency No

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