Japan’s 2025 Budget to Reach Record 115 Trillion Yen, Defense Spending Surpasses 8 Trillion Yen
Japan’s core budget for the 2025 fiscal year, beginning April 1, is expected to hit a historic 115 trillion Japanese yen ($732 billion), with the defense budget projected to exceed 8 trillion yen for the first time.
This marks a significant increase in military spending as the country continues to bolster its defense capabilities amidst growing regional tensions.
The initial budget includes social security spending of over 38 trillion yen, reflecting the country’s ongoing commitment to its aging population. A key highlight of the defense budget is a planned 8.5 trillion yen allocation aimed at enhancing Japan’s military readiness.
The funds will go toward strengthening missile defense systems, expanding air defense and missile defense capabilities, and advancing drone technology. Japan is also set to invest in improving its space capabilities and cybersecurity.
The draft budget includes provisions for three major new defense initiatives: a remote monitoring system for military bases and secure facilities, a warehouse automation system, and an AI-based supply forecasting system.
Additionally, Japan plans to build three new Mogami-class frigates as part of its naval expansion, with the goal of modernizing its forces. This budget request follows the Japanese Defense Ministry’s call for a record 8.5 trillion yen allocation to enhance defense capabilities during the next fiscal year (April 1, 2025 – March 31, 2026).
