The Japanese government has approved a draft defense budget at a record high as it faces what it calls the "most complex security environment" since World War II.
Prime Minister Shigeru Ishiba’s cabinet on December 27 approved a 115.54 trillion yen ($730 billion) budget for the 2025 fiscal year, including 8.7 trillion yen ($55 billion) allocated for defense—the highest amount ever in local currency terms.
The proposed 2025 defense budget surpasses the previous record of 7.9 trillion yen ($56 billion at the exchange rate when approved) set in the 2024 fiscal year. It marks the 13th consecutive year Japan has increased its defense spending. The proposed budget will require parliamentary approval to take effect.
Key Allocations
The Japanese government plans to spend $5.9 billion to bolster long-range strike capabilities next year. It also earmarked over $260 million to purchase two MQ-9B Sea Guardian drones, an unarmed maritime surveillance variant of the MQ-9 Reaper.
Around $2.6 billion will be allocated to improving soldiers' quality of life, addressing a manpower shortage in the military caused by Japan’s aging population. Of this, $2.4 billion will enhance living and working conditions for military personnel, $105 million will improve compensation, including higher wages, and $12 million will support job placement programs for retiring soldiers, who often leave service earlier than typical office workers.
“No matter how powerful our tanks and military vehicles are, they are meaningless without enough personnel to operate them,” Prime Minister Ishiba said on December 26.
Another notable expenditure is nearly $690 million for a collaborative project with Italy and the United Kingdom to develop a next-generation fighter jet, with the first model expected by 2035.
Advanced Capabilities
Tokyo will also allocate funds to develop a satellite-based information-gathering system for ballistic missile tracking and monitoring maritime activities around Japan, including disputed areas with China.
The record-high defense budget comes as Japan’s Ministry of Defense warns that the country faces the "most complex and severe security environment" since World War II. Japan is entering the third year of a five-year military modernization plan.
This modernization effort emphasizes improving long-range defensive and offensive capabilities, enabling strikes on targets beyond enemy retaliation range, and strengthening dominance in areas such as unmanned systems through collaboration with allies and like-minded nations.
Earlier this year, Japan successfully tested an extended-range version of its Type-12 anti-ship missile, capable of hitting targets 900–1,200 kilometers away.
(Sources: AFP, Kyodo)
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