Japan's Kishida Orders Defense Budget Increase to 2% of GDP in 5 Years

Defense Spending This Year at 0.96% of GDP... Must More Than Double
Kishida "Also Considering Reallocation of COVID-19 Budget"

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Hyun-ji] Japanese Prime Minister Fumio Kishida has instructed to increase the defense-related budget to about 2% of the Gross Domestic Product (GDP) within five years, Kyodo News reported on the 28th.

According to the report, Prime Minister Kishida called Defense Minister Hamada Yasukazu and Finance Minister Suzuki Shunichi to the official residence on the same day and ordered measures to ensure that the defense budget for 2027 reaches 2% of GDP. This year, Japan's defense budget is about 0.96% of GDP, so to achieve 2% by 2027, it must be more than doubled based on the current defense budget.

The Japanese government plans to achieve this goal by allocating budgets for the Japan Coast Guard, research and development in other ministries to strengthen defense capabilities, and public infrastructure budgets. They are also considering reallocating the COVID-19 budget. Prime Minister Kishida appeared before the House Budget Committee on the same day and stated, "We will consider utilizing the budget significantly secured for COVID-19 measures as we manage the infection going forward."

The Yomiuri Shimbun reported that the Japanese government and ruling party are considering allocating more than 40 trillion yen (approximately 384 trillion won) over five years from 2023 to 2027 for the "Mid-Term Defense Capability Development Plan." This figure represents a 45.6% increase compared to the current expenditure of 27.47 trillion yen.

This content was produced with the assistance of AI translation services.