Japan is set to bolster its defense capabilities through a forthcoming economic and fiscal policy plan, which aims to significantly boost military spending over the coming years. This initiative is part of the government’s annual Basic Policy on Economic and Fiscal Management and Reform, anticipated to gain approval later this month. While not specifying a new spending target, the document is expected to highlight defense spending benchmarks adopted by key allies and partners.
The policy draft underscores the growing international expectations, particularly from the United States, for allies to take on more security responsibilities. It highlights the defense spending trajectories of NATO members, as well as countries like South Korea and Australia, which have put forward medium- and long-term plans to enhance their defense budgets. A footnote in the draft will reference NATO’s objective to elevate 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 commitment to allocate 3% of GDP to defense by 2033.
Japan’s current national security strategy, introduced in 2022, set a target to double its defense spending from 1% to 2% of GDP within five years, a goal that was accomplished ahead of schedule in fiscal 2025. As Japan navigates an increasingly complex regional security landscape, the revised policy is poised to lay the groundwork for updates to its three key national security documents later this year.
This strategic shift in Japan’s defense policy reflects a broader trend of nations enhancing military capabilities in response to evolving geopolitical dynamics. The focus on defense spending is expected to remain a pivotal element of Japan’s security strategy as it seeks to align with international standards and respond to regional security challenges.