Investment in education is a public expenditure that provides long-term benefits, such as infrastructure investment. The impact of population aging on education spending theoretically has both positive and negative effects. This chapter analyzes the impact of population aging on education spending using Japanese prefectural data. Unlike infrastructure-related and education investments, spending on welfare has no long-term benefits. Thus, as the population ages, the elderly might likely favor increased expenditures on social welfare and elderly welfare, leading to an increase in these expenditures. We use Japanese prefectural data to analyze the impact of aging on expenditure on social welfare and elderly welfare, besides education expenditures. Furthermore, we empirically analyze public assistance expenditures that are unlikely to offer long-term benefits, such as social welfare and welfare expenditures for the elderly.