From The Japan Times · Erica Yokoyama · · 1m 10s
Japan's Finance Minister Promises Fiscal Prudence on Defense Spending
Japan's finance minister vows to prioritize fiscal sustainability when increasing defense funding amid budget debates.
In brief
Japan's finance minister vows to prioritize fiscal sustainability when increasing defense funding amid budget debates. Japan's finance minister Satsuki Katayama says the government will consider fiscal sustainability when raising defense spending to fund a potential 3.5% GDP target. Originally reported by The Japan…
Japan's Defense Spending Plan
Japan will prepare a new five-year defense spending plan to be released by year-end.
Defense Funding Considerations
Finance Minister Satsuki Katayama says the government will give due consideration to fiscal sustainability when increasing defense spending.
Proposed Defense Spending Levels
Total spending under the new plan could total ¥70 trillion ($441 billion) to ¥80 trillion.
Current Defense Spending
Japan's defense spending was 1.9% of GDP last fiscal year, or roughly ¥11 trillion.
Targeted Defense Spending
Japan aims to raise defense spending to 3.5% of GDP, aligning with NATO and U.S. allies' targets.
Fiscal Prudence Commitment
Katayama emphasized decisions on defense spending would be based entirely on Japan's independent judgment.
Budget Challenges
The government faces pressure to fund defense spending alongside food tax cuts and strategic industry investments.
The one thing
Japan's finance minister Satsuki Katayama says the government will consider fiscal sustainability when raising defense spending to fund a potential 3.5% GDP target.
