Tokyo moves closer to 2% defence target with 2026 budget

Japan’s initial budget for defence spending and related costs for fiscal 2026 has been set at approximately 10.6 trillion yen (about $66.5 billion), Defence Minister Shinjiro Koizumi said on Friday, April 17.

According to Koizumi, the figure represents roughly 1.9 per cent of Japan’s 2022 gross domestic product, which the government uses as a baseline for comparison. However, when calculated against projected GDP for fiscal 2026, the ratio would stand at around 1.5 per cent.

Japan has committed to increasing defence spending and related expenditures to 2 per cent of GDP by fiscal 2027, marking a significant shift from its long-standing policy of keeping defence spending near 1 per cent. The change comes amid rising security concerns linked to regional developments, including challenges posed by China and North Korea.

The policy direction is based on three key national security documents adopted in late 2022, which outline plans for total defence spending of approximately 43 trillion yen over the five-year period through 2027.

An additional budget approved in December, which included 1.7 trillion yen allocated to security and diplomacy, has enabled Japan to effectively reach the 2 per cent threshold two years ahead of schedule under Prime Minister Sanae Takaichi, who is known for her strong stance on national security.

Japan’s defence budget has increased steadily in recent years. When measured against fiscal 2022 GDP, it rose to about 1.4 per cent in fiscal 2023, 1.6 per cent in fiscal 2024, and 1.8 per cent in fiscal 2025.

Koizumi noted that using fiscal 2022 GDP as a benchmark provides consistency, as it was the reference year when the current national security framework was established.

By Tamilla Hasanova