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Japan Approves Record ¥122.31 Trillion Budget With ¥9.04 Trillion for Defense

Next comes Diet approval following a surge in debt service and bond issuance.

Overview

  • The plan boosts long-range strike and unmanned coastal defenses, including ¥100.1 billion for the SHIELD drone network and accelerated Type‑12 missile deployment to Kumamoto by March.
  • Defense outlays reach about ¥9.04 trillion for FY2026, funding standoff missiles, hypersonic programs and space and cyber capabilities as part of year four of a five‑year buildup targeting roughly 2% of GDP.
  • Financing relies on ¥29.58 trillion in new bonds, with debt‑service costs at a record ¥31.28 trillion based on a higher 3.0% assumed interest rate.
  • Social‑security spending totals ¥39.06 trillion, the largest share of the ¥122.31 trillion general account.
  • The budget heads to the regular Diet session opening Jan. 23, with passage needed by March, as recent ChinaJapan frictions — including radar lock incidents — intensify security concerns.