Japan eyes record $56B defense budget amid regional security concerns

Japan's Defense Ministry plans to seek a record 8.9 trillion yen ($56 billion) in defense spending for fiscal 2027, as Tokyo accelerates its military buildup amid growing regional security concerns, Kyodo News reported on Saturday.

The budget request, to be submitted by the end of August to the Finance Ministry, could rise further during year-end negotiations.

A senior government official said total defense spending could eventually reach about 10 trillion yen ($63 billion).

The proposed budget would focus on preparing Japan's Self-Defense Forces for what officials call "new forms of warfare," including the growing use of drones and artificial intelligence.

Japan plans to invest in interceptor drones, AI-assisted command-and-control systems, longer-range missiles, cloud infrastructure for classified data, and high-powered laser and microwave weapons.

The planned spending is part of Japan's five-year defense buildup program, which allocates 43 trillion yen ($270 billion) for fiscal 2023-2027.

Tokyo has steadily increased defense spending since adopting a new national security strategy in 2022, citing security threats from China, North Korea and Russia.

Analysts warn that Japan's expanding defense capabilities could contribute to an arms race in East Asia, while China has criticized Tokyo's military buildup.