Japan’s defence ministry has requested a record budget of approximately $55.6 billion (8.9 trillion yen) for the fiscal year beginning April 2027, marking a significant increase in military spending amid rising regional tensions. The final budget could exceed 10 trillion yen, according to reports citing unnamed ruling party sources, as Tokyo accelerates efforts to modernize its defence capabilities with a focus on emerging technologies such as artificial intelligence (AI), drones, and hypersonic weapons.
The budget proposal highlights Japan’s intent to counter “new ways of warfare” by developing an AI-powered decision support system designed to enhance command and control efficiency. The plan also includes procuring cost-effective drones intended to operate alongside long-range missiles to target hostile assets. Additionally, there is a move to develop underwater-launched hypersonic missiles and establish a specialized unit to address cognitive warfare, which involves disinformation and influence operations aimed at swaying public opinion.
These developments reflect Japan’s strategic shift towards a more proactive defence posture, gradually moving away from its post-World War II pacifist stance that emphasized self-defence only. The country’s growing concern over the rapid military modernization of neighboring China, North Korea’s nuclear and missile programs, and Russia’s invasion of Ukraine has heightened its sense of urgency. Japanese officials worry that instability in East Asia could mirror conflicts seen in Europe, particularly given increasing Chinese pressure on Taiwan and ongoing territorial disputes between Japan and its neighbors.
Prime Minister Sanae Takaichi, known for her hawkish views on China, has prioritized national defence as part of her conservative agenda. Her administration has signaled more assertive security policies, including easing restrictions on weapons exports and acquiring capabilities for “counterstrike” operations. Takaichi’s remarks last year suggesting potential Japanese military involvement in a Taiwan conflict have drawn sharp criticism from China, which accuses Japan of a revival of “new militarism.”
While the defence ministry’s request outlines broad priorities, many cost details for weapons systems, drones, and digital infrastructure remain unspecified. Officials indicated that financial allocations will be finalized after the government completes a comprehensive review of core national security documents scheduled by year-end. These documents are expected to set strategic guidelines for Japan’s defence development in light of the evolving security environment.
The proposed defence budget increase is part of a wider government spending plan, with the overall budget expected to rise to around 143 trillion yen for the next fiscal year, up from the current 122.4 trillion yen. Japan’s efforts to bolster its military capabilities and deepen security cooperation in the region underscore its intent to address new and complex threats in a volatile geopolitical landscape.