Japan is set to bolster its defense capabilities through a new economic and fiscal policy plan that aims to significantly increase military spending over several years. The government’s Basic Policy on Economic and Fiscal Management and Reform, anticipated for approval later this month, will focus on transforming Japan’s defense capabilities within a five-year period. Although the document will not specify a new spending target, it is expected to align with defense spending goals adopted by key allies and partners.
The policy is likely to highlight the increased calls from the United States for allies to take on more security responsibilities. It will also reference the medium- and long-term defense spending plans of NATO members, South Korea, and Australia. A draft of the policy includes a footnote mentioning NATO’s aim to boost core defense spending to 3.5% of GDP by 2035, South Korea’s objective to reach 3.5% of GDP as soon as possible, and Australia’s plan to allocate 3% of GDP to defense by 2033.
Japan’s current national security strategy, unveiled in 2022, set a goal to raise defense spending from 1% to 2% of GDP within five years, a target that was achieved ahead of schedule in fiscal 2025. The anticipated policy revision will lay the groundwork for updates to Japan’s three main national security documents later this year. As Japan navigates a progressively complex regional security landscape, defense spending is expected to remain a key focus.
This strategic shift comes amidst a global environment where nations are increasingly urged to enhance their military capacities. By aligning its plans with those of its international counterparts, Japan underscores its commitment to regional stability and security. As the policy nears approval, it represents a significant step in Japan’s efforts to adapt to and address evolving security challenges.
