Japan is embarking on a decisive military shift, marked by a record defence budget and an expanded missile and drone programme that could make it the world’s third-largest military spender.
The cabinet has approved a defence budget exceeding ¥9 trillion for fiscal 2026, a 9.4% increase from the previous year, aimed at strengthening strike-back capabilities, coastal defence, cruise missiles and unmanned systems amid rising regional tensions.
This represents the fourth year of a five-year plan to double defence spending to 2% of GDP, a level the government says is necessary given what it calls the most severe security environment of the postwar era, while maintaining Japan’s identity as a peace-oriented nation.
If approved by parliament by March as part of the wider national budget, the programme would place Japan behind only the United States and China in military spending. Prime Minister Sanae Takaichi’s government plans to fund the buildup through higher corporate, tobacco and income taxes, has pledged to meet the 2% target earlier than planned under US pressure, and has warned Japan could become involved if China acts against Taiwan.
The budget prioritises long-range capabilities, including ¥177 billion for upgraded Type-12 surface-to-ship missiles with a range of about 1,000 kilometres, some of which will be deployed in southwestern Japan ahead of schedule. Alongside missiles, Japan is accelerating the use of drones and other unmanned weapons to address demographic decline and military staffing shortages, while preparing further revisions to its security strategy to support a more proactive defence posture.
Japanese PM Takaichi
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