Japan has a much lower government expenditure as a proportion of GDP than many European countries like Germany, France, Italy, Sweden, Spain, Austria, etc., and has much better public infrastructure and services like transport and healthcare than USA.

Governments by nature are wasteful, corrupt, and incompetent, sure, but is Japan really particularly bad? You could point to spectacular high speed rail failures in USA or a healthcare system which costs double per-capita as other developed countries for much worse outcomes in most objective measures of public health, incredibly expensive violent and ultimately failed attempts to "export democracy" to places like Afghanistan, and on and on.

So... yes maybe it does, but it seems misleading to make a comment like that unless you can say how it's particularly worse than any other government's waste and failure.