Japan is set to bolster its defense capabilities through a new economic and fiscal policy blueprint, which aims to significantly increase military spending in the coming years. This strategic move is outlined in the government’s annual Basic Policy on Economic and Fiscal Management and Reform, anticipated for approval later this month. The policy will reaffirm Japan’s objective of transforming its defense infrastructure over the next five years, although it will not specify a new spending target. Instead, it will emphasize defense spending goals adopted by key allies and partners.
The policy is expected to address the growing pressure from the United States for its allies to take on more substantial security responsibilities. In doing so, it will highlight that NATO members, along with South Korea and Australia, have already set medium- and long-term plans to boost their defense expenditures. A draft of the policy includes a footnote referencing NATO’s aim to increase core defense spending to 3.5% of GDP by 2035, South Korea’s ambition to reach the same percentage as soon as possible, and Australia’s plan to allocate 3% of GDP to defense by 2033.
Japan’s current national security strategy, which was introduced in 2022, had initially set a goal to raise defense spending from 1% to 2% of GDP within a five-year period. Remarkably, the government achieved this target ahead of schedule by fiscal 2025. The updated policy is expected to lay the groundwork for revisions to Japan’s three key national security documents later this year, with a strong focus on defense expenditure as Tokyo navigates an increasingly complex regional security landscape.
By aligning its defense spending strategies with those of its allies, Japan aims to enhance its military readiness and address the evolving security challenges in the region. The emphasis on defense in the new policy underscores Japan’s commitment to maintaining regional stability and responding effectively to potential threats. As the nation continues to adapt its defense posture, the forthcoming updates to its national security documents will likely cement its strategic priorities.