Abstract: During the 30 years of the Heisei period, the economy of Japan stagnated, tax revenue slumped, and social security spending expanded rapidly. Since then, Japans fiscal situation became extremely serious, the proportion of deficit treasury bonds rose sharply, and the debt crisis became more prominent. Due to its abundant domestic savings, its external debt dependence ratio is low, and the national debt issued can be fully digested in the country. Although Japan did not have an immediate debt crisis similar to that of Greece and other countries, such financial management is clearly unsustainable. This article reviews the changes in the financial situations of Japan during the 30 years of Heisei, discusses several major fiscal reforms the Japanese government tried during this period, and looks into the new era of Reiwa from the perspective of finance.

Key words: Heisei, Reiwa, Japan s fiscal reform