Japan govt approves record budget, including for defence

$1 trillion budget aims to speed up military upgrade amid worsening ties with China

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The Japanese government approved a record budget for the upcoming fiscal year on Dec 26, to pay for everything from bigger defence spending to ballooning social security costs as inflation persists.

The 122.3 trillion yen (S$1 trillion) budget for the fiscal year from April 2026 will include a record 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.

“This budget is the least we need to fulfil our defence responsibilities as Japan faces its most severe and complex security environment since the end of the war,” Defence Minister Shinjiro Koizumi told a news conference.

Japan has been shedding its strict pacifist stance in recent years, moving to obtain “counterstrike” capabilities and doubling military spending to 2 per cent of gross domestic product (GDP).

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.