Japan is set to enhance its defense capabilities with a new economic and fiscal policy blueprint, which is anticipated to facilitate a notable increase in military spending in the years ahead. As part of this strategy, the government’s annual Basic Policy on Economic and Fiscal Management and Reform is poised for approval later this month. While this document will not specify a new financial target, it is expected to emphasize defense spending benchmarks adopted by key allies and international partners.
The policy is likely to echo the United States’ calls for allies to take on more significant security roles. It will highlight the defense spending plans of NATO members, South Korea, and Australia, underscoring their medium- and long-term commitments. For instance, the draft policy includes a footnote detailing NATO’s aim to elevate core defense spending to 3.5% of GDP by 2035, South Korea’s objective of reaching the same percentage as soon as possible, and Australia’s vision to allocate 3% of GDP to defense by 2033.
Japan’s current national security strategy, introduced in 2022, set an ambitious target to increase defense spending from 1% to 2% of GDP within five years, a goal that was achieved by fiscal 2025 ahead of schedule. This accomplishment underscores Japan’s dedication to bolstering its military capabilities in response to evolving regional security challenges.
The impending policy is expected to lay the groundwork for updates to Japan’s three key national security documents later in the year. With a focus on defense spending, these updates will aim to address the increasingly intricate security landscape in the region. As Japan navigates these complexities, boosting defense expenditure remains a central element of its strategic planning.