September 1, 2026
The Ministry of Defense on August 31 decided to request a record-high defense budget of approximately 8.9 trillion yen for fiscal 2027. However, the amount will likely go significantly beyond ten trillion yen following the revision of the three key national security documents scheduled for the end of the year.
In the FY 2023 budget, which was compiled after the adoption of the current three documents, the approved military spending was about 1.2 trillion yen higher than the requested amount.
Incidentally, the U.S. Trump administration is demanding that Japan increase its military spending to 3.5% of GDP, a level equivalent to 24 trillion yen per year.
The Takaichi government, with the aim of justifying a rise in military spending, emphasized the significance of such expenditure as an “investment” that could contribute to economic growth, and added the defense industry to the country’s growth strategy. However, a “war dependent economy” that profits from war distorts the structure of national finances.
The budget request included the first-ever introduction of AI in order to accelerate decision-making processes, such as analyzing information and selecting targets, into the Self-Defense Force command and control systems. The United States has already used AI in attacks on Iran as well as in other military operations, but AI mistakes, including accidental strikes on civilian facilities, have become an issue of concern.
The request incorporated, for the first time, a policy to utilize unmanned weapons in combination with standoff missiles as a “counterstrike capability (an enemy base attack capability)”. This policy is intended to combine long-range missiles with long-range drones to carry out enemy base attacks, which directly violates the Constitution.
In this regard, for the first time ever, the ministry in its budget proposal requested funding for the development of hypersonic guided missiles capable of being launched from underwater. The introduction of submarine-launched long-range missiles will pose a serious threat, which could heighten tensions in the region and beyond.
Aiming to build sustainable warfighting capabilities, the budget request for the first time proposed a “Government Owned, Contractor Operated” model under which the government would acquire factories and facilities that supply munitions and other materials while the private sector would run them. In effect, this proposal means the revival of the practice of military arsenals owned as it was by the former Japanese military.
Past related article:
> Defense Ministry considering using US-made AI for SDF command and control functions [August 19, 2026]
In the FY 2023 budget, which was compiled after the adoption of the current three documents, the approved military spending was about 1.2 trillion yen higher than the requested amount.
Incidentally, the U.S. Trump administration is demanding that Japan increase its military spending to 3.5% of GDP, a level equivalent to 24 trillion yen per year.
The Takaichi government, with the aim of justifying a rise in military spending, emphasized the significance of such expenditure as an “investment” that could contribute to economic growth, and added the defense industry to the country’s growth strategy. However, a “war dependent economy” that profits from war distorts the structure of national finances.
The budget request included the first-ever introduction of AI in order to accelerate decision-making processes, such as analyzing information and selecting targets, into the Self-Defense Force command and control systems. The United States has already used AI in attacks on Iran as well as in other military operations, but AI mistakes, including accidental strikes on civilian facilities, have become an issue of concern.
The request incorporated, for the first time, a policy to utilize unmanned weapons in combination with standoff missiles as a “counterstrike capability (an enemy base attack capability)”. This policy is intended to combine long-range missiles with long-range drones to carry out enemy base attacks, which directly violates the Constitution.
In this regard, for the first time ever, the ministry in its budget proposal requested funding for the development of hypersonic guided missiles capable of being launched from underwater. The introduction of submarine-launched long-range missiles will pose a serious threat, which could heighten tensions in the region and beyond.
Aiming to build sustainable warfighting capabilities, the budget request for the first time proposed a “Government Owned, Contractor Operated” model under which the government would acquire factories and facilities that supply munitions and other materials while the private sector would run them. In effect, this proposal means the revival of the practice of military arsenals owned as it was by the former Japanese military.
Past related article:
> Defense Ministry considering using US-made AI for SDF command and control functions [August 19, 2026]
