Launchers for the Japan Ground Self-Defense Force’s Type 03 surface-to-air missile, left, and Type 12 surface-to-ship missile are displayed at Camp Ishigaki on Ishigaki Island on Sept. 17, 2025. (Brian McElhiney/Stars and Stripes)
TOKYO — Japan’s Cabinet on Friday approved another record-high defense budget for fiscal 2026 that for the first time exceeds 9 trillion yen, about $58 billion.
Japan plans 9.04 trillion yen in defense spending in fiscal 2026, the 14th consecutive year of record-breaking defense budgets. The 2026 proposal is higher by 3.8% than this year’s budget of approximately $55.8 billion, according to the budget document.
The spending plan, which requires final approval from the country’s legislature, maintains Japan’s ongoing defense buildup and its goal of committing 2% of Japan’s gross domestic product to defense. Japan’s fiscal year begins in April.
“Based on the basic recognition that the security environment surrounding Japan is rapidly becoming increasingly severe, we have decided to first take measures ahead of schedule to achieve the 2% of GDP level set out in the current National Security Strategy,” the defense budget plan states.
Next year’s budget continues to focus on core areas, such as standoff defense capabilities, unmanned defense capabilities and cross-domain operations to counter increasingly diverse, complex and advanced threats, according to the budget document.
About $6.24 billion is allocated for stand-off defense capabilities, including approximately $1.14 billion for upgraded surface-to-ship missiles, and about $192 million to acquire a scramjet-powered hypersonic weapon, a guided missile that can fly over Mach 5, making it difficult to intercept, according to the proposed budget.
It also allocates about $1.78 billion for unmanned assets, including approximately $642 million for drones capable of operating on land, in the air, and on and below the water in preparation for the Synchronized, Hybrid, Integrated and Enhanced Littoral Defense program, or SHIELD, set to launch by the end of fiscal 2027.
The budget also includes changing the name of Japan Air Self-Defense Force to Japan Air and Space Self-Defense Force, a year earlier than scheduled.
The plan also creates a section within the defense buildup planning bureau that will study the best way to organize the self-defense forces in the Pacific Ocean since military activities by surrounding countries are expanding and becoming active, according to the proposed budget.
China and North Korea are prime concerns for Japan’s defense establishment, but Prime Minister Sanae Takaichi has focused on China particularly, most recently at a Dec. 17 press conference in Tokyo.
“China is also an important neighboring country for Japan, and it is necessary to build a constructive and stable relationship,” according to a transcript of her remarks posted on the Prime Minister’s Office website.
“That said, there are security-related concerns between Japan and China, including those related to economic security,” she said.
The budget allocates about $3.73 billion for improving benefits, facilities and living conditions for self-defense personnel as the Ministry of Defense copes with recruiting difficulties.
The budget also allocates $3.67 billion to projects associated with U.S. Forces Japan, such as relocating Marines on Okinawa from Marine Corps Air Station Futenma to Henoko and completing an airfield at Mageshima where U.S. pilots may train for carrier operations.
“We will steadily implement the U.S. Forces realignment project, which will strengthen the deterrence and response capabilities of the Japan-U.S. alliance and reduce the burden on local communities,” the budget document states.
