Japan's Defense Ministry on August 25 formally submitted a proposed budget of ¥8.89 trillion (approximately $60 billion) for fiscal 2027, the highest defense spending in the country's history, according to Kyodo News.
The record budget reflects Tokyo's new defense strategy amid rising geopolitical tensions in the Indo-Pacific region, as well as the Japanese government's commitment to strengthening national deterrence and defense capabilities.
According to sources, the proposal is part of Japan's plan to increase defense spending to about 2% of GDP by 2027, aligning with NATO standards.
Priority investment areas in the proposal include the development and procurement of long-range strike weapons, enhancing missile defense capabilities, modernizing the navy and air force, and deepening defense cooperation with strategic allies such as the U.S. and regional partners.
The decision comes as Japan faces a range of complex security challenges, including North Korea's repeated missile launches and China's growing military power in the East China Sea and South China Sea.
Japan previously adopted new security documents in late 2022, marking a major shift in its defense policy after decades of a purely defensive posture. The Japanese government has also committed to roughly doubling defense spending from its current level of about 1% of GDP.
The proposed budget will continue to be discussed and reviewed before being submitted by the Japanese government to the Diet for formal approval next year.
