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Japan Approves Record 2026 Budget With Largest-Ever Defense Outlay

Beijing denounces the expansion as militarism as the plan enters Diet scrutiny.

Overview

  • Cabinet approval sets total general account spending at ¥122.3092 trillion and defense-related funding at a record ¥9.0353 trillion, the 12th straight annual increase.
  • Unmanned and AI-heavy modernization advances with ¥100.1 billion for a coastal ‘Shield’ drone defense concept targeting construction by FY2027 and ¥1.1 billion for MQ-9B SeaGuardian verification flights.
  • Force and workforce upgrades include ¥581.4 billion to improve Self-Defense Forces pay and facilities—a 42% rise—and ¥30.1 billion to procure hypersonic guided missiles.
  • The Japan Coast Guard receives a record ¥297.1 billion, allocates ¥22.3 billion for Senkaku-area security, and plans to expand the SeaGuardian fleet to 10 aircraft by 2030 after a temporary operations pause following a landing accident.
  • Okinawa-related U.S. base realignment costs reach a record ¥337.323 billion to accelerate Henoko/Oura Bay work, as China publicly condemns the buildup and opposition parties signal tough questioning in the Diet.