Khaberni - The Japanese government, today, Friday, has approved a record budget for the next fiscal year, which exceeds 122.3 trillion yen (about 784.6 billion dollars), at a time when Tokyo is trying to achieve a balance between fiscal stimulus and debt inflation concerns, with an unprecedented increase in defense spending to address the rising security challenges in the region.
The government stated that the budget, which begins in April 2026 and will be presented to the parliament at the beginning of next year, is the largest in the history of Japan, exceeding this year's budget of 115.2 trillion yen.
In this context, the Japanese government also approved a record defense budget exceeding 9 trillion yen (about 58 billion dollars), an increase of 9.4% compared to the previous year, as part of the five-year program to double military spending to 2% of the Gross Domestic Product.
Plan and Allocations
The plan includes allocating more than 970 billion yen to enhance long-range missile capabilities, including the purchase of locally developed "Type-12" missiles, which have a range of about one thousand kilometers, in addition to enhancing the arsenal of drones and coastal defense capabilities.
These steps come amid rising regional tensions, particularly with China, which the Japanese security strategy adopted in 2022 describes as "the biggest strategic challenge" for the country, and with the commitment of Prime Minister Sanae Takaichi's government to enhance the defensive and offensive role of the Japanese Self-Defense Forces within its security alliance with the United States.
Japan, which has the highest debt ratio among developed countries with more than twice the size of its economy, faces additional challenges with rising borrowing costs, especially after the Bank of Japan abandoned its ultra-loose monetary policy, and the assumed interest rate rose to 3%, the highest level in about 29 years.
