Japan finance ministry warns against financing defence buildup with new debt
EWJ•Japan's Finance Ministry said any increase in defence spending should not be financed with new government bonds. The government is weighing a 70 trillion to 80 trillion yen plan for fiscal 2027-2031, nearly double the current programme.
1. Ministry warns against new debt
Japan's Finance Ministry said on Thursday that any increase in defence spending should not be financed through new government bond issuances. The ministry made the call at a meeting of the Fiscal System Council, an advisory panel on fiscal policy.
2. Proposed spending and funding
The government is weighing a 70 trillion yen to 80 trillion yen defence buildup plan for fiscal years 2027 to 2031, nearly double the current five-year programme of about 43 trillion yen, sources have said. Japan has been under pressure from the United States to raise defence spending to 3.5% of gross domestic product. Finance Minister Satsuki Katayama said last month that no specific funding method had been decided; an additional corporate tax increase has reportedly emerged within the government as a possible source.
