Japan's Defense Ministry plans to submit a fiscal 2027 budget request of about 8.9 trillion yen (56 billion USD), its highest ever, with total defense spending possibly reaching 10 trillion yen including extra costs and adjustments [1, 2, 3, 4, 5, 6].
The expanded budget will focus on new warfare capabilities. These include interceptor drones to counter suicide drones, integration of artificial intelligence for command decisions, and the development of high-powered lasers and microwave technologies for air defense [1, 2, 3, 4, 5, 6]. Japan also plans to deploy long-range weapons like the Type 25 land-based anti-ship missile with a range around 1,000 km, and variants launched from aircraft and warships [1, 3, 6].
The budget request includes proposals to create new organizational units such as an International Policy Bureau to promote defense cooperation and a body to support defense equipment exports and consolidate the production base [1, 3, 6]. There are also plans to establish, in 2027, an institution to assist retired Self-Defense Force personnel with welfare and career development to improve recruitment and retention [1].
Japan’s defense spending has risen steadily, from about 5.4 trillion yen in 2022 to roughly 9 trillion yen approved for fiscal 2026, which includes expenditures related to US forces stationed in Japan [1, 2, 3, 5, 6]. The drive to raise defense spending aims to reach about 2% of Japan’s GDP by 2027, doubling the traditional cap of around 1% [1, 3, 6].
An anonymous Japanese official said the final budget could reach 10 trillion yen, underscoring growing ambitions. Another official noted, "The total defense spending could eventually reach about 10 trillion yen ($63 billion)" [1, 4]. Prime Minister Sanae Takaichi emphasized that "The security environment has changed, and Japan must adjust, including adopting new warfare modes to fundamentally strengthen its defense capabilities" [1].
Some analysts and officials warn the build-up could trigger a regional arms race in East Asia [1, 2, 3, 4].
The Defense Ministry must submit its 2027 budget request to the Finance Ministry by the end of August 2026. The final budget is expected to be finalized by the end of 2026 and could exceed the 8.9 trillion yen preliminary request, potentially reaching the 10 trillion yen mark [2, 6].
