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Japan Approves Record ¥9 Trillion Defense Budget Focused on Standoff Missiles, Drones and Hypersonics

The plan now awaits Diet approval by March, with funding set to rely on higher corporate and tobacco taxes alongside income tax rises from 2027.

Overview

  • Cabinet set defense outlays at ¥9.04 trillion for FY2026, the fourth year of a buildup targeting roughly 2% of GDP, which the Finance Ministry says Japan will reach by March two years ahead of schedule.
  • More than ¥970 billion goes to long‑range “standoff” capabilities, including ¥177 billion for upgraded Type‑12 surface‑to‑ship missiles slated for first deployment in Kumamoto by March, a year early.
  • About ¥100 billion funds the SHIELD coastal defense network of unmanned air, surface and underwater systems with an operational goal around March 2028, with initial purchases expected from foreign suppliers such as Turkey or Israel to speed fielding.
  • The proposal includes allocations for advanced strike programs such as hypersonic weapons, including ¥30.1 billion for hypersonic guided missiles and separate funding for scramjet development.
  • Beijing condemned Tokyo’s expansion and recent Taiwan‑related remarks by Prime Minister Sanae Takaichi as destabilizing, as Tokyo protests alleged Chinese radar locks near southwestern Japan and prepares a new office to study China’s Pacific operations; the Air Self‑Defense Force would be rebranded as the Air and Space Self‑Defense Force.