# 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.
- Title: Japan's Finance Minister Promises Fiscal Prudence on Defense…
- Summary: Japan's finance minister vows to prioritize fiscal sustainability when increasing defense funding amid budget debates. Japan's finance minister Satsuki…
- Keywords: satsuki katayama, finance ministry, defense spending, budget, japan, fiscal sustainability, corporate tax, gdp, news, politics, world, Japan's
- Source: The Japan Times — https://japantimes.co.jp/business/2026/10/20/economy/japan-katayama-defense-spending
- Author: Erica Yokoyama
- Published: 2026-10-20T03:19:00+00:00
- Read time: 1 min
- Topics: satsuki katayama, finance ministry, defense spending, budget, japan, fiscal sustainability, corporate tax, gdp, news, politics, world
## 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.
## Key takeaway

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.