Defense Ministry to seek record ¥8.9 trillion in fiscal 2027 budget

Japan's Defense Ministry is set to request a record budget of ¥8.9 trillion for fiscal 2027, surpassing the current fiscal year's allocation of ¥8.85 trillion. This substantial increase aims to bolster Japan's defense capabilities as the nation seeks to adapt to new forms of warfare, primarily through the integration of artificial intelligence and other advanced technologies.

The proposed budget, which is expected to be finalized by the end of this month, will focus on three main areas: preparing for novel combat strategies enabled by emerging technologies, maintaining operational readiness during extended conflicts, and reinforcing the country's defense industrial infrastructure.

Key aspects of the budget proposal include investments in unmanned attack drones designed for extended flights, development of long-range submarine missiles to bolster counterattack capabilities against enemy bases, and the creation of a new agency dedicated to supporting retired Self-Defense Forces personnel and their families. Additionally, the ministry plans to introduce three new bureaus, one of which will oversee international defense policy.

Prime Minister Fumio Kishida's administration had previously outlined a five-year defense spending plan totalling around ¥43 trillion through fiscal 2027. During Prime Minister Sanae Takaichi's tenure, fiscal 2025 defense spending amounted to approximately ¥11 trillion, exceeding the government's goal of increasing defense expenditure to 2% of Japan's GDP, two years ahead of schedule.

However, the United States has urged Japan to raise its defense spending to at least 3.5% of GDP, prompting discussions about a potential new target that will be established through the upcoming revisions of Japan's National Security Strategy, National Defense Strategy, and Defense Buildup Program.