Japan is setting the stage to bolster its defense capabilities through an upcoming economic and fiscal strategy that aims to facilitate a notable rise in military expenditure over the next few years. The anticipated approval of this plan, known as the Basic Policy on Economic and Fiscal Management and Reform, is expected later this month. It will reaffirm Japan’s ambition to revamp its defense infrastructure within a five-year timeframe. While the policy itself will not specify a new spending amount, it is anticipated to emphasize the defense spending goals that have been adopted by Japan’s key allies and partners.
A significant aspect of this policy is its acknowledgment of the United States’ increasing calls for allies to share more of the security burden. The document is predicted to highlight that NATO members, along with South Korea and Australia, have already committed to medium- and long-term plans to elevate their defense budgets. According to the draft, a footnote will cite NATO’s intention to boost core defense spending to 3.5% of GDP by 2035, South Korea’s aim to reach the same percentage as soon as possible, and Australia’s plan to allocate 3% of its GDP to defense by 2033.
Japan’s current national security strategy, launched in 2022, set out to double its defense budget from 1% to 2% of GDP over five years. Remarkably, the government reached this target by fiscal 2025, ahead of the anticipated timeline. This proactive approach underscores Japan’s commitment to enhancing its defense capabilities in response to an evolving regional security landscape.
The revised policy is poised to lay the groundwork for updates to Japan’s three major national security documents expected later this year. As Tokyo navigates an increasingly complex geopolitical environment, maintaining a focus on defense spending remains a priority. This strategic reassessment is seen as a crucial step in ensuring that Japan is adequately prepared to address current and future security challenges.
