The government has begun coordinating toward a five-year defense budget of roughly ¥60 trillion for fiscal 2027 to 2031, Kyodo News reported, leaning away from the large tax increase a bigger buildup would require.
The figure would be set in the defense buildup plan, one of three security documents due for revision at the end of the year. The current five-year total, for fiscal 2023 to 2027, is about ¥43 trillion.
Officials concluded that raising defense spending further would make a substantial tax increase necessary to secure funding, and are tilting toward avoiding one. Multiple people with knowledge of the matter disclosed the direction on the 13th.
Even if a large tax rise is avoided, the tax burden may still grow to some degree.
Trump pressure and the 2% target
It is unclear whether the move will win the understanding of the Trump administration in the United States, which has pressed its allies to spend more.
The revision will also draw attention to how the government reworks its current target of 2% of gross domestic product, including related costs.
Drones and munitions at the core
The next plan will center on bulk purchases of drones and on securing ammunition and missiles for a protracted conflict.
The Defense Ministry had initially estimated that a straightforward calculation based on the equipment and structures it considers necessary would reach ¥70 trillion to ¥80 trillion.
Support agency shelved
A proposal has emerged to forgo the creation of a “Retired Self-Defense Forces Members and Families Support Agency,” which would centrally handle support measures for former service members and their families.