TOKYO — Japan’s Cabinet on Friday approved the country’s largest-ever defense budget for the coming fiscal year, keeping with its plan for defense budget increases until fiscal 2027.
The plan to spend 8.7 trillion yen, or about $54.8 billion, is a 9.7% increase from this year’s budget of 7.95 trillion yen, or about $50.1 billion. The increase marks the 13th consecutive year of increased military spending. Japan’s fiscal year begins in April.
It’s also on track with Japan’s defense buildup plan and its goal to gradually increase its defense budget to 8.9 trillion yen, or about $56.1 billion, by fiscal 2027. The government in 2022 set a target of spending 2% of Japan’s gross domestic product for defense.
“Based on fundamental understanding that our nation is facing the most severe and complex security environment since the end of [World War II], we will continue to secure a necessary and sufficient budget for FY 2025, which is the third year of the plan, in order to drastically strengthen defense capabilities within the defense buildup plan period,” the budget document stated.
Next year’s budget continues to focus on core areas of defense, such as standoff and unmanned defense capabilities.
About 939 billion yen, or about $5.92 billion, is allocated to continue strengthening Japan’s standoff defense capability.
The 2027 spending plan permits the Ministry of Defense and Self-Defense Forces to fundamentally strengthen its standoff response to threats from beyond the range of anti-air missiles and against naval vessels and landing forces attempting to invade, including those that target Japan’s remote islands, according to the budget document.
Among the items in that category is about 283 billion yen, or about $1.78 billion, to build a satellite constellation for target detection and tracking capabilities. The system is budgeted this year for the first time; the ministry hopes to see it operating by March 2027.
The budget allocates about 110 billion yen, or about $699 million, for unmanned defense capabilities, by which Japan hopes to achieve asymmetrical superiority in the air, at sea and underwater, while minimizing human loss.
Japan in November selected the MQ-9B Sea Guardian, a long-endurance, unmanned aerial vehicle made by U.S. firm General Atomics, which the ministry hopes will strengthen intelligence and surveillance capabilities. It allocated 41.5 billion yen, or about $261 million, to acquire two Sea Guardians for next fiscal year.
The ministry also allocated about 3.2 billion yen, or about $20 million, to acquire small, offensive unmanned aerial vehicles for security in the southwestern islands, a strategically important area for Japan.
Next year’s budget also focused on improving benefits for its troops, as Japan is having difficulties in recruiting personnel, the budget stated.
It allocated 409.7 billion yen, or about $2.58 billion, to introduce over 30 new or increased allowances for troops, as well as improve living conditions to match younger troops’ lifestyles and to promote a work environment that accommodates raising children or caring for elder family members, it stated.
The budget also allocated 344.5 billion yen, or about $2.17 billion, for realignment of U.S. Forces Japan, such as relocating Marines on Okinawa from Marine Corps Air Station Futenma to Henoko and building a facility to accommodate training at Mageshima for the U.S. carrier air wing at Marine Corps Air Station Iwakuni.
“We will promote measures around bases and steadily implement the realignment of U.S. Forces,” the budget stated.