TOKYO — November 13, 2026 — Japan’s plans to expand its defense capabilities are facing growing budget pressure, with government officials considering a smaller military spending package than some defense officials and lawmakers had expected.
Japan’s Finance Ministry has proposed spending between ¥50 trillion and ¥60 trillion ($313 billion to $376 billion) on defense over the five years beginning in April 2027, according to people familiar with the discussions cited by Reuters.
The proposal would exceed the ¥43 trillion allocated under Japan’s current five-year defense plan but remain significantly below the ¥80 trillion figure that some defense officials and lawmakers had been anticipating.
Potential cuts to weapons purchases
The lower spending proposal could lead to reductions of as much as half in planned purchases of some missiles and aircraft, including U.S.-built F-35 fighter jets, according to the sources.
Japan’s defense buildup has included plans to increase missile capabilities, expand ammunition stockpiles and introduce more military drones as Tokyo seeks to strengthen its ability to respond to potential regional threats.
Drone orders are reportedly not expected to be affected by the proposed funding changes.
A debate over how much Japan can afford
The dispute reflects a broader challenge facing Prime Minister Sanae Takaichi’s government: balancing security priorities with domestic economic commitments.
Finance Ministry officials have argued that a substantially larger defense increase would be difficult to finance while the government pursues economic-growth measures and a proposed reduction in the sales tax on food.
The tax reduction could create an estimated annual revenue shortfall of about ¥4.3 trillion, according to Reuters reporting.
The government has not yet finalized the size of Japan’s next defense buildup plan. A Defense Ministry spokesperson said the amount had not been decided and that the government would determine the budget based on Japan’s defense requirements.
China and Taiwan remain central to the debate
Japan’s military buildup comes as tensions continue across East Asia.
Tokyo is seeking stronger defenses in response to China’s growing military capabilities and concerns about a possible conflict involving Taiwan. Japanese officials are also concerned that a Taiwan conflict could threaten nearby Japanese islands and important regional sea lanes.
The government is expected to revise Japan’s national security strategy and defense plan before the end of the year.
The budget dispute could therefore become a significant test of how far Japan is prepared to go in expanding its military capabilities while maintaining fiscal stability.
World Media Feed Editorial Team
Source: Reuters. Additional context from Japan Times reporting based on Reuters.
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