Japan yet to decide on defence budget funding, finance minister says
EWJ•Japan has not decided how to fund a potential increase in defence spending, Finance Minister Satsuki Katayama said. The new five-year defence strategy is likely to put annual spending above 10 trillion yen, reportedly, up from about 9 trillion yen this fiscal year.
1. Funding undecided
Katayama said Japan had decided on no specific funding method for a potential increase in defence spending, including a possible corporate tax hike. She said the government was assessing the defence capabilities required and the appropriate spending level.
2. Spending plans
Kyodo News reported that an additional corporate tax increase had emerged within the government as a possible funding source. Citing government sources, the report said annual defence spending under the next five-year strategy is likely to exceed 10 trillion yen ($63.08 billion), compared with about 9 trillion yen in the current fiscal year. The United States has pressed Japan to raise defence spending to 3.5% of GDP, which it has said should be a global standard for allies.
