AP News – Japan’s Cabinet has approved a record draft defense budget of 9.04 trillion yen ($58 billion) for fiscal year 2026, underscoring the country’s accelerating military buildup amid escalating tensions with China, local media reported on Friday.The draft budget for the fiscal year beginning in April exceeds the previous high of 8.7 trillion yen ($55.7 billion) allocated for the current year ending in March 2026, according to Kyodo News. It includes expenditures related to hosting US military bases in Japan.
Fiscal 2026 will mark the fourth year of Japan’s five-year defense expansion plan, which totals 43 trillion yen ($275 billion) and aims to significantly strengthen the country’s security and deterrence capabilities. As part of the plan, 100.1 billion yen ($641 million) has been set aside to develop a “Shield” layered coastal defense system integrating aerial, surface, and underwater unmanned vehicles.
Japan is also stepping up investment in drone technology, allocating 1.1 billion yen ($7 million) to evaluate long-endurance drones designed to counter airspace violations.
To bolster its space capabilities, Japan plans to rebrand the Air Self-Defense Force as the Air and Space Self-Defense Force. An additional 1.1 billion yen has been earmarked for equipment to monitor and respond to satellite interference.The budget further includes 30.1 billion yen ($193 million) for the procurement of hypersonic guided missiles, aimed at enhancing Japan’s counterattack capabilities.
Earlier, Prime Minister Sanae Takaichi’s Cabinet also approved a draft initial state budget of 122.3 trillion yen ($783 billion) for the next fiscal year—the largest in Japan’s history.
Japan’s defense push follows heightened friction with China, particularly after Takaichi stated on Nov. 7 that a Chinese attack on Taiwan could constitute a “survival-threatening situation” for Japan, potentially justifying the exercise of collective self-defense. The remarks prompted a strong response from Beijing, including travel advisories against Japan and the reimposition of a ban on Japanese seafood imports.
