"Defense Spending to Reach 2% of GDP Two Years Ahead of Schedule"
On October 24, Japanese Prime Minister Sanae Takaichi stated in her first parliamentary address that she would seek to strengthen relations with South Korea, an important neighboring country, through dialogue between the leaders.
In her policy speech at the extraordinary session of the National Diet that afternoon, Prime Minister Takaichi said, "We will work to strengthen cooperation with countries that share fundamental values, as well as with many nations in the Global South (emerging and developing countries in the Southern Hemisphere)."
Regarding Japan-U.S. relations, Prime Minister Takaichi said, "The Japan-U.S. alliance is the cornerstone of our diplomatic and security policy," and expressed her intention to build a relationship of trust with U.S. President Donald Trump to elevate bilateral ties to a higher level.
She added, "We will also deepen multilateral security consultations, including among Japan, the United States, and South Korea; Japan, the United States, and the Philippines; and Japan, the United States, Australia, and India."
On China, she referred to it as "an important neighboring country" and said, "It is necessary to build a constructive and stable relationship." However, she also acknowledged, "It is true that there are concerns regarding security and economic security between Japan and China." She continued, "We will comprehensively pursue a strategic and mutually beneficial relationship through repeated candid dialogue between the leaders."
Prime Minister Takaichi emphasized her intention to increase the defense budget and strengthen defense capabilities, announcing that the timeline for raising defense spending to 2% of gross domestic product (GDP) would be moved up by two years. She stated, "Regarding the 2% of GDP defense spending level set by the National Security Strategy, we will take measures to advance this to fiscal year 2025 by including supplementary budgets," and added, "We will begin a review for revising the three key security documents next year."
The Japanese government revised its three key security documents in December 2022 and decided to increase defense spending to 2% of GDP by the 2027 fiscal year (April 2027 to March 2028). Japan's defense spending slightly exceeded 1% of GDP in 2022, but has steadily increased, reaching 1.8% of GDP in the 2025 fiscal year.
In addition, Prime Minister Takaichi used the phrase "strong economy" six times, stating that she would strategically promote fiscal spending. She also announced plans to increase tax revenue without raising tax rates by boosting income and improving consumer sentiment, and said that economic security-related strategic sectors such as artificial intelligence (AI), semiconductors, shipbuilding, and quantum technology would be prioritized.
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