According to Kyodo News on December 14, the Japanese government is coordinating a plan to set the defense budget for fiscal year 2026 (April 2026–March 2027) at approximately 9 trillion yen (about $57 billion).
This marks the largest defense budget in history, following this year’s budget of 8.7 trillion yen.
The Japanese government intends to utilize this massive defense budget to expand its arsenal of long-range missiles and unmanned aerial vehicles (drones). The long-range missiles will serve as a means for “counterstrike capability”—the ability to attack enemy bases—while drones are expected to be used in establishing the “Shield” coastal defense system.
Reports also indicate plans to secure hypersonic guided missiles, which are difficult to intercept as they fly at more than five times the speed of sound. Furthermore, the Type 03 Medium-Range Surface-to-Air Missile (SAM) system will be upgraded to enable the interception of ballistic missiles.
To strengthen capabilities in the space domain, the government plans to establish a new “Space Operations Group (tentative name)” and expand the Air Self-Defense Force into the “Air and Space Self-Defense Force.” Additionally, the Ground Self-Defense Force based in Naha, Okinawa Prefecture, will be upgraded from a brigade to a division.
Furthermore, a new “Pacific Defense Initiative” will be established to review the Self-Defense Forces’ structure in an effort to deter China.
Previously, in 2022, Japan revised its three core security documents, deciding to increase defense-related spending to 2% of its Gross Domestic Product (GDP) by fiscal year 2027 and to secure a total defense budget of 43 trillion yen over a five-year period.
