Japan eyes record defense budget of 9 trillion yen for 2026

The proposed figure exceeds the current fiscal year’s record initial budget of 8.7 trillion yen, which began in April, as Japan responds to growing security concerns posed by China and North Korea, as well as pressure from U.S. President Donald Trump to boost defense spending.

The draft initial budget for fiscal 2026- the fourth year of Japan’s five-year defense expansion plan totaling 43 trillion yen - is expected to receive Cabinet approval later this month under Prime Minister Sanae Takaichi, the sources said.

Planned expenditures include the procurement of hypersonic guided missiles capable of traveling at speeds above Mach 5, as well as upgrades to medium-range surface-to-air missile systems designed to intercept ballistic missiles.

Japan also aims to expand its use of drones as part of a new layered coastal defense initiative known as the “Shield” system. The strategy involves deploying large numbers of relatively low-cost unmanned aerial, surface, and underwater vehicles to strengthen maritime and coastal security.

Since assuming office in October, Prime Minister Takaichi has pledged to accelerate Japan’s goal of raising defense-related spending to 2 percent of gross domestic product, advancing the target by two years to fiscal 2025.

Meanwhile, the United States has reportedly urged Japan in private discussions to further increase defense spending to 3.5 percent of GDP, amid intensified Chinese military activity in the Indo-Pacific and continued missile and nuclear development by North Korea.

Prior to the launch of the current five-year defense buildup plan, Japan’s annual defense budget had long been capped at roughly 1 percent of GDP, or about 5 trillion yen.

Previously, Qazinform News Agency reported Japanese Prime Minister Takaichi ranks third in the Forbes List of World's 100 Most Powerful Women of 2025.