Japan warns arms suppliers of deep order cuts as budget squeeze hits military buildup
EWJ•Japan has proposed spending 50 trillion to 60 trillion yen ($313 billion to $376 billion) on defence over five years from April 2027, below the 80 trillion yen sought by some officials and lawmakers. The proposal could mean cuts of up to half in planned purchases of some missiles and aircraft, including F-35 fighters, sources said.
1. Defence spending proposal
Finance ministry officials proposed a five-year defence budget of 50 trillion to 60 trillion yen starting in April 2027, four sources said. That would exceed the current 43 trillion yen plan but fall short of the 80 trillion yen sought by some defence officials and ruling Liberal Democratic Party lawmakers; the gap could cut planned purchases of some missiles and aircraft by as much as half.
2. Funding debate
The proposal would leave Japan short of its target of raising defence outlays to 2% of gross domestic product, Reuters calculations showed. Finance ministry officials argue that a larger increase would be difficult to fund alongside Prime Minister Sanae Takaichi’s plans to invest in economic growth and cut the sales tax on food. The tax cut would create an annual 4.3 trillion yen revenue shortfall, sources said.
3. Party resistance
The proposal is likely to face resistance from security hawks in Takaichi’s party. One ruling party official familiar with the discussions said a defence budget in the 50-trillion-yen range was out of the question if Japan aims to build capabilities to deter and prevent a contingency.
