Japan is set to enhance its defense capabilities through a forthcoming economic and fiscal policy blueprint, which is anticipated to bolster military spending in the years ahead. The annual Basic Policy on Economic and Fiscal Management and Reform is slated for approval later this month and will reaffirm Japan’s objective of transforming its defense capabilities within a five-year timeframe. Although the document will not specify a new numerical spending target, it is expected to underscore defense spending goals adopted by key allies and partners.
The policy is poised to address the increasing calls from the United States for its allies to undertake greater security responsibilities. It will highlight that NATO members, South Korea, and Australia have adopted medium- and long-term plans aimed at increasing their defense expenditures. A draft of the policy includes a footnote that mentions NATO’s objective to elevate core defense spending to 3.5% of GDP by 2035, South Korea’s aim to achieve 3.5% of GDP as soon as possible, and Australia’s intention to allocate 3% of GDP to defense by 2033.
Japan’s current national security strategy, introduced in 2022, set a target to raise defense spending from 1% to 2% of GDP within five years, a goal that the government accomplished ahead of schedule in fiscal 2025. This strategic push signals Japan’s commitment to fortifying its defense capabilities amidst a rapidly evolving regional security landscape.
The revised policy is expected to lay the groundwork for updates to Japan’s three pivotal national security documents later this year. As Tokyo navigates an increasingly complex regional security environment, defense spending is likely to remain a central focus, reflecting the country’s strategic priorities and alignment with international defense standards.