This article discusses Japan's large public and private debt, the role of the Bank of Japan in debt management, fiscal policy and deficit reduction, tax revenue and expenditure reforms, international assistance for debt repayment, economic growth and debt reduction. It outlines how the Japanese government has implemented several policies to reduce its budget deficits including raising taxes on certain items, increasing fees for some services, cutting spending on certain programs or projects, issuing new bonds to raise funds for deficit reduction purposes and implementing reforms aimed at increasing tax revenues while cutting back on spending.