Japan is moving closer to becoming the world’s third-largest defence spender after its Cabinet approved a record military budget for the 2026 fiscal year.
The government of Japan has endorsed a defence budget exceeding 9 trillion yen (€48.8 billion), marking a 9.4% increase from the previous year. The spending plan is part of a five-year programme aimed at doubling Japan’s defence budget to 2% of gross domestic product.
Defence Minister Shinjiro Koizumi said the increase was necessary given what he described as the most challenging security environment Japan has faced since the post-war era. He added that the military expansion would not change Japan’s commitment to peace.
If approved by parliament by March, the budget would place Japan behind only the United States and China in global defence spending.
The new budget includes increased funding for long-range missiles and unmanned systems. Japan plans to spend 177 billion yen on domestically upgraded Type-12 surface-to-ship missiles with a range of about 1,000 kilometres. The first deployment is scheduled for March in the country’s southwest.
The government is also allocating around 100 billion yen to develop unmanned air, sea and underwater drones for coastal surveillance and defence under a programme known as “SHIELD,” which is expected to be operational by 2028.
Japan’s military expansion comes amid rising tensions in the region, particularly with China. The country’s current security strategy identifies China as its main strategic challenge and calls for a stronger military role under Japan’s alliance with the United States.
Prime Minister Sanae Takaichi has previously said Japan could become involved if China were to take action against Taiwan.
China has criticised Japan’s defence buildup. Beijing said Tokyo is accelerating its military expansion and moving away from its long-standing path of peaceful development.
Japan also plans to strengthen its defence industry through joint projects with allied countries. For 2026, the government has allocated more than 160 billion yen for the joint development of a next-generation fighter jet with the United Kingdom and Italy, expected to enter service in 2035.
