Development of split of expenditure in %, 1960-2015

One quarter of expenditure (¥23.5 trillion, €180 billion) is spent on servicing the public
debt, which is the highest3 in the OECD (246% of GDP in 2014), although interest payments on
the debt amount to only 14% of GDP.4 Social
security (¥31.5 trillion, €240 billion) is by far the biggest envelope. Some ¥1 trillion every year is needed to bridge the gap between social
security-related spending and receipts. The
third main item of expenditure is represented
by ‘Local Allocation Tax Grants’ (¥15.5 trillion,
€120 billion). They are distributed to local
governments to pay for basic administrative
services. Source: Japanese Ministry of Finance, July 2015.