-
Advertisement
Japan
AsiaEast Asia

Japan’s record US$782 billion budget to boost military firepower, tame inflation

The budget comes as the market worries about Prime Minister Takaichi’s big spending policies adding to Japan’s public debt

Reading Time:2 minutes
Why you can trust SCMP
6
A Japanese Type 12 surface-to-ship missile is launched during a military exercise in Australia on July 22. Photo: Australian Department of Defence via AP
Agence France-Presse

The Japanese government on Friday approved a record budget for the coming financial year to pay for everything from bigger defence spending to ballooning social security costs as inflation persists.

The 122.3 trillion yen (US$782 billion) budget for the financial year from April 2026 will include some 9 trillion yen for defence spending, as Prime Minister Sanae Takaichi aims to accelerate Tokyo’s sweeping upgrade of its military in the face of worsening relations with China.
The defence ministry said in a briefing document that “Japan faces the most severe and complex security environment since the end of the war”, stressing the need to “fundamentally strengthen” its defence capabilities.
Advertisement

At the core of its request is 100 billion yen for the so-called Shield coastal defence system, which would marshal drones to block any invasion by foreign troops.

Japan is hoping that Shield – Synchronised, Hybrid, Integrated and Enhanced Littoral Defence – will be completed by March 2028, with no details yet on which part of Japan’s coastline it will be linked to.

Advertisement

The 122 trillion yen figure compares with the 115 trillion yen sought for the current financial year to March, which was also a record.

Advertisement
Select Voice
Select Speed
1.00x