n the early 21st, Koizumi administration of Japan carried out fiscal reforms in two aspects: budgeting process and public expenditure. In terms of budget process reform, government structure was partially reorganized in order to obtain organic combination of fiscal policy and macroeconomic policy. Moreover, in the reorganized structure, fiscal sustainability was monitored as well. On the other hand, in terms of public expenditure reform, Policy-Group Project, purposing the priority distribution of budget through exclusion of duplicative programs and horizontal coordination between ministries, aimed at achievements of policy objectives through close connection between public budget and reforms of regulations and institutions. In addition, this fiscal reform contained both Budget Enforcement Inspection reflecting results of execution of the budget and a multi-year program, Policy Evaluation and Budget Reflecting for Model Program, which was expected to utilize limited resources in effective ways. What Japanese reforms suggest to Korea about financial execution are as follows: (ⅰ) Introduction of Policy-Group Program; (ⅱ) reorganization of Program Budgeting based on principle of portfolio theory; (ⅲ) making the best use of Budget Enforcement Inspection and Program Review; (ⅳ) vertical and horizontal flexibility in executing major budget program aiming at enhancing the efficiency of fiscal management.