Japan seeks record $56B defense budget amid military buildup

Japan’s Defense Ministry requested a record budget of about 8.9 trillion yen ($56 billion) for fiscal year 2027 as the government prepares to unveil a new military buildup plan later this year.

The request, covering the fiscal year beginning next April, is 0.9% higher than the current year’s initial budget, according to figures released Monday.

The ministry identified unmanned platforms, artificial intelligence, long-range strike capabilities, integrated air and missile defenses, space and cybersecurity among its spending priorities.

The proposal includes $1.8 billion for 17 MQ-9B SeaGuardian unmanned aircraft intended to strengthen maritime surveillance, particularly in the Pacific.

Some $1 billion was also requested for hypersonic missiles and associated ground equipment. Funding was sought for additional missiles capable of striking targets at long range as Japan works to strengthen its deterrence and counterattack capabilities.

The ministry said it aims to expand the use of unmanned systems for surveillance, targeting and attack missions while reducing risks to personnel and achieving cost advantages.

AI would meanwhile be integrated into military data collection and analysis to accelerate target selection, battlefield visualization and operational decision-making.

The proposal also includes measures to improve pay, food, housing, and working conditions for Self-Defense Forces personnel as Japan struggles to recruit and retain service members.

The headline figure could rise significantly because the ministry left costs unspecified for around 160 projects that may be affected by revisions to Japan’s three key security documents later this year. Additional funding will be considered during final budget negotiations.

The documents comprise the National Security Strategy, National Defense Strategy and Defense Buildup Program.

Japan’s current five-year program, adopted in 2022, envisioned about $269 billion in defense spending through fiscal 2027.

Prime Minister Sanae Takaichi has pledged to accelerate the country’s military buildup amid increased Chinese military activity around Japan and expanding defense cooperation between Russia and North Korea.

Japan’s defense-related expenditure reached roughly $68.8 billion or 1.9% of gross domestic product in the previous fiscal year when spending by agencies such as the coast guard was included.

The overall budget requests for fiscal 2027 are also expected to reach a record 143 trillion yen ($890 billion), according to Kyodo News.

Debt-servicing costs are projected to hit an all-time high of 36.6 trillion yen ($230 billion) as rising interest rates increase the cost of government borrowing.

The government also received requests exceeding 10 trillion yen ($63 billion) for a new investment category covering areas such as artificial intelligence, semiconductors, robotics and national security.

The Finance Ministry will review the requests before drafting the budget for Cabinet approval by the end of the year.