Japan increases military budget due to rising regional tensions

Japan has recently announced a drastic increase in its military budget, faced with rising regional tensions, particularly related to activities by China, North Korea, and Russia. The largest military budget in Japan's history amounts to $59 billion for the fiscal year 2025, continuing trends that began more than a decade ago under former Prime Minister Shinzō Abe. Prime Minister Fumio Kishida confirmed plans for military spending to reach 2% of GDP by 2027, bringing Japan to the NATO standard for military expenditures [9].

One of the main goals of the budget increase is to strengthen deterrence capabilities against threats through modernization and expansion of military capacities. The most significant changes involve the procurement of modern weapons, such as Tomahawk cruise missiles that Japan imports from the U.S., and the development of new missile systems, including domestically produced hypersonic missiles. Additionally, the launch of a new satellite constellation has been announced to provide better detection and tracking capabilities for targets aimed at enhancing defense [10].

Strategic response to threats in the Indo-Pacific

Japan is facing a "new era of crisis" in which rising threats from China, North Korea, and Russia directly affect the security of the country. Chinese activities in the East and South China Seas, including tensions over Taiwan, require Japan to strengthen its military capabilities in the region. The budget allocates $8.77 billion to enhance the Integrated Air and Missile Defense (IAMD) system, which has already been adopted by the U.S. military. This system is crucial for Japan's defense against potential threats from hypersonic weapons developed in China, North Korea, and Russia [8].

In addition to modernizing defense capabilities, the Japan Maritime Self-Defense Force (JMSDF) has invested significant resources in building two new multi-purpose frigates named "New FFM," which will replace previous Mogami-class vessels. These frigates will have enhanced anti-submarine warfare capabilities and improved capacities for various operations at sea. Furthermore, the JMSDF is working on modifying its two Izumo-class helicopter carriers into light aircraft carriers that will support operations with Lockheed Martin F-35B aircraft by 2027 [8].

Strengthening defense capabilities and new approaches

In addition to naval operations, a significant portion of the budget is directed towards new technologies, such as unmanned systems. The Japanese Ministry of Defense aims to develop defense capabilities through unmanned aerial vehicle (UAV) systems, planning investments of $850 million for this purpose. The use of unmanned systems also includes surveillance and electronic warfare systems, which will further enhance the capabilities of Japan's Self-Defense Forces in the region [9].

The ministry is also working to increase maneuverability and rapid deployment of troops, which includes the purchase of three mobile ships for the Japan Ground Self-Defense Force (JGSDF). These ships are expected to ensure fast and reliable transport of necessary units to repel potential attacks on Japan's southwestern islands. Additionally, the construction of new military facilities is planned, including ammunition depots and support for civil cases in the event of natural disasters [8].

Impact on the economy and the public

One of the key challenges of increasing the military budget lies in the economic conditions Japan currently faces. The depreciation of the yen, which by July 2024 fell to its lowest value in nearly four decades, significantly affects the overall costs of acquiring military systems and equipment, especially considering that most of these acquisitions occur in a stronger U.S. dollar. Therefore, the Japanese government has announced measures to achieve "greater efficiency" through long-term contracts and bulk procurements [11].

Despite significant plans for increasing military spending, the issue of financing remains sensitive. The government has proposed raising taxes to secure necessary funds for military build-up, but public opinion on this proposal remains unclear, and debates about tax policy are expected to intensify later this year [11].

These changes in military policy reflect increasing pressure on Japan to enhance its defense capabilities and respond to rising threats in the Indo-Pacific region, which also involves close cooperation with key allies, such as the U.S., and strengthening diplomacy with European and Asian countries. All these measures are aligned with the fundamental preambles of the Japanese constitution regarding maintaining a defensive orientation and not becoming military forces that threaten other countries [11].