Japan's cabinet has greenlit a historic 9.04 trillion yen ($58 billion) defense budget for fiscal 2026, marking a significant acceleration of the nation's security modernization efforts. This allocation surpasses the current fiscal year's record 8.7 trillion yen budget and advances Tokyo's five-year defense spending plan initiated in 2023.
The new budget prioritizes cutting-edge defense systems, with 100.1 billion yen allocated to develop the multi-layered 'Shield' coastal protection network. This ambitious project will integrate advanced aerial, surface, and underwater surveillance platforms. An additional 1.1 billion yen will fund research into long-endurance drones to monitor airspace security concerns.
In a related move, Japan's December 16 supplementary budget injected 1.7 trillion yen into security programs, enabling the nation to reach its NATO-comparable defense spending target of 2% of GDP by fiscal 2025 – two years ahead of schedule. This rapid escalation follows Tokyo's 2022 policy shift away from its post-WWII practice of limiting defense spending to about 1% of GDP.
Analysts suggest this budgetary surge reflects growing regional security challenges, though government officials emphasize the spending aligns with Japan's exclusively defense-oriented policy. The fiscal plan now moves to parliamentary review, with implementation set to begin April 1, 2026.
