The Japanese government on Friday approved a record defense budget for the next fiscal year as Prime Minister Sanae Takahiti seeks to accelerate the modernization of the military amid deteriorating relations between Japan and China, LETA reports citing AFP.
The budget approved by the government for the fiscal year starting in April amounts to 122.3 trillion yen (665 billion euros). This is a record amount that will cover both rising defense expenses and social protection costs amid persistently high inflation.
"This is the minimum budget necessary to fulfill our defense commitments, as Japan faces the most severe and complex security situation since the end of the war," said Defense Minister Shinjiro Koizumi.
In recent years, Japan has moved away from its strict pacifist stance, seeking to gain counter-strike capabilities and doubling military spending to 2% of Gross Domestic Product (GDP).
At the core of the defense plan is the coastal defense system SHIELD, costing 100 billion yen, which will utilize drones to repel potential foreign troop invasions.
Japan expects that the synchronized, hybrid, integrated, and enhanced coastal SHIELD system will be completed by March 2028, although it has not yet specified where along the country's coastline it will be deployed.
The budget is being developed amid the conflict between China and Japan, triggered by Takahiti's proposal in November for possible military intervention by Tokyo in the event of an attack on Taiwan.
Beijing claims that self-governing democratic Taiwan is part of its territory and threatens to use force to establish control over the island.
The record Japanese budget was approved amid market concerns over Takahiti's broad public spending program, which increases the country's national debt.
In the current fiscal year, Japan already had the largest budget at that time, amounting to 115 trillion yen.
According to the International Monetary Fund, Japan's government debt-to-GDP ratio is already the highest among the largest economies in the world and could reach 232.7% this year.
Takahiti defends the idea of increasing public spending to stimulate economic growth.
"The budget is designed so that people feel safe, receive necessary medicines, social protection, quality education, and jobs regardless of where they live in Japan," said the Prime Minister, who took office in October, at a press conference on Friday.
On Tuesday, in an interview with the influential business newspaper Nikkei, Takahiti emphasized her commitment to ensuring Japan's financial stability, rejecting any "irresponsible borrowing or tax cuts."
The government-approved budget proposal still needs to be approved by parliament.
