Japan today announced plans for its largest defense budget in history, proposing a $57 billion investment in military capabilities. The rationale behind this increase is clear: “The international community is facing the greatest post-war trial yet and has entered a new era of crisis,” states the opening line of the budget request document. While the budget requires approval from Japan’s Diet, its passage is expected.
Japan’s journey towards increased defense spending began under former Prime Minister Shinzo Abe 12 years ago and has rapidly accelerated due to China’s aggressive actions concerning Taiwan and the East and South China Seas. This budget marks the second consecutive year of significant increases — 7.4 percent higher than last year’s budget — as part of a broader strategy to strengthen and reorient the military towards greater offensive capabilities.
In a major strategy paper released in December 2022, Japan committed to doubling its defense spending, deploying an aircraft carrier for the first time since World War II, acquiring hundreds of long-range cruise missiles, and fundamentally transforming its military from a strictly defensive posture to one that can effectively deter and defeat threats.
Aligned with these goals, the new budget outlines funding for seven primary areas:
- Stand-off Defense Capabilities: Requesting $5.1 billion, with nearly half ($2.2 billion) allocated for a small satellite constellation to support tracking and targeting for this emerging counterstrike capability.
- Comprehensive Air and Missile Defense: A budget request of $1.7 billion to counter missiles and threats from North Korea, Russia, and China.
- Unmanned Asset Defense Capabilities: Requested funding totals $850 million.
- Cross-Domain Operational Capabilities: While exact totals for this section are unclear, major items include $344 million for an RC-2 signals intelligence aircraft and $97 million for an electronic warfare (EW) aircraft.
- Command and Control and Intelligence Functions: This segment has a budget request of $4.4 billion.
- Maneuvering and Deployment Capability: Aiming to enhance Japan’s power projection, this area requests $3.9 billion.
- Sustainability and Resiliency: This includes $6.4 billion for ammunition, including 155mm shells.
Additionally, the defense force intends to procure eight more Lockheed Martin F-35As for $871 million and three more F-35Bs for $423 million. Tokyo also plans to advance its fighter program developed with the UK and Italy, requesting $787 million for engineering and design on the Global Combat Air Program.
However, Japan faces economic challenges that could impact its defense strategies. The country’s weak currency and relatively high prices necessitate careful cost assessment by the Ministry of Defense (MOD), which will promote efficient procurement through bulk purchases and long-term contracts.
Japan has been grappling with a shrinking defense industrial base and is working to strengthen the supply chains for second and third-tier suppliers. Recruiting sufficient personnel for the Japanese Self Defense Force (JSDF) has also been challenging, with much of the planned increased spending over the next decade aimed at attracting and retaining military personnel.
A central theme of the enhanced military focus will be All Domain capabilities. As the security environment around Japan becomes increasingly dangerous and uncertain, the country aims to develop defense capabilities that integrate operations across space, cyberspace, and the electromagnetic spectrum, capable of sustained strategic actions from peacetime to armed conflict.
To improve naval efficiency and enhance power projection, the budget includes a comprehensive reorganization of the surface fleet, set to be completed by March 2026. This reorganization will rename the current Japan Maritime Self-Defense Force’s Fleet Escort and Mine Warfare forces to the Fleet Surface Force, creating centralized command and supervision over all surface vessel units, according to a navy spokesman.
