Japanese Prime Minister Kishida Orders Securing 412 Trillion Won for Defense Budget Over 5 Years... 50% Increase

[Image source=Yonhap News]

[Asia Economy Reporter Yuri Choi] Japanese Prime Minister Fumio Kishida has instructed securing approximately 43 trillion yen (about 412 trillion won) in defense spending over five years to strengthen defense capabilities, Kyodo News and local public broadcaster NHK reported on the 5th.

According to the reports, Prime Minister Kishida called Defense Minister Yasukazu Hamada and Finance Minister Shunichi Suzuki to the Prime Minister's Office on the same day to convey this policy. This amount is about 50% more than the 27.47 trillion yen (about 263 trillion won) included in the 2019?2023 "Mid-term Defense Capability Development Plan."

Until now, the Ministry of Defense had requested 48 trillion yen in defense spending over five years starting in 2023, but the Ministry of Finance argued that 35 trillion yen should be allocated due to difficulties in securing funds. It is expected that the defense budget will be set between 40 trillion and 43 trillion yen over five years.

Earlier, on the 28th of last month, Prime Minister Kishida instructed Defense Minister Hamada and Finance Minister Suzuki to raise defense spending, which is currently at 0.96% of the Gross Domestic Product (GDP), to 2% by 2027.

The Japanese government plans to decide on the "Defense Capability Development Plan," which contains a ten-year national security strategy, at the Cabinet meeting equivalent to the State Council in mid-June.

Kyodo News pointed out regarding the significant increase in Japan's defense budget, "The method of securing funds remains unclear," and "there is strong resistance to tax increases within the Liberal Democratic Party, so discussions to reach a conclusion within this month are expected to face difficulties."