Japan Mulls 40-Trillion Yen Budget For Defense Until 2027

The government wants to drastically bolster the nation’s defense capabilities by raising total defense spending to around 40 trillion yen ($289 billion) in its five-year defense budget through fiscal 2027.

Photo Insert: Japanese ground Self-Defense Forces (SDF) conduct drills.

It hopes to fund the increase by possibly raising taxes, Kuniaki Nishio and Naoki Matsuyama reported for the Asahi Shimbun.

“Defense spending needs to be at least 40 trillion yen,” a government official said. “We are aiming for the total security-related expenditures--including infrastructure development with other ministries and agencies, along with research and development--to account for more than 2 percent of the GDP in the next five years.”

The Defense Ministry is seeking around 48 trillion yen to fund more defense capabilities, according to several government officials. However, the Finance Ministry wants to curtail the budget to the lower 30 trillion-yen range due to limited financial resources, the sources said.

“Strengthening defense capabilities is the goal, but the burden on the public should be as small as possible,” said Finance Minister Shunichi Suzuki, who oversees assessing budgets.

The government aims to revise the current program by the end of this year to increase spending by around 15 trillion yen, with adjustments being made to settle the spending at around 40 trillion yen.

The government sets total defense spending for the next five years in its Medium-Term Defense Program to proceed with purchasing equipment for the Self-Defense Forces (SDF).

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