Japan Defence Budget– Japan’s Cabinet greenlights a 9.4% higher $58B defense budget for 2026, funding missiles, drones, and SHIELD amid China disputes over Taiwan remarks and radar incidents. Tokyo eyes 2% GDP spending by 2028.
New Delhi, December 26, 2025, Time 11:26 PM IST- Japan’s Cabinet has approved a record defence budget of over 9 trillion yen ($58 billion) for fiscal year 2026, marking a 9.4% increase from the previous year. The move underscores Tokyo’s accelerated military buildup amid growing tensions with China and regional security concerns surrounding Taiwan.
The fiscal year beginning in April 2026 marks the fourth year of Japan’s five-year plan to double its annual defence spending to 2% of GDP, aligning with NATO standards. Once achieved, Japan will become the world’s third-largest defence spender, behind the United States and China.
Defence Minister Shinjiro Koizumi described the new allocation as essential, stating,
“This budget represents the absolute minimum required for Japan to fulfill its defense obligations as it faces its most severe and complex security environment in the postwar period.”
Missiles and Drones to Strengthen Defence Capabilities
A significant portion of the budget focuses on strengthening Japan’s long-range strike and unmanned defence capabilities. Around 177 billion yen has been allocated for the domestically developed Type-12 surface-to-ship missiles, which have a strike range of approximately 1,000 kilometers.
The missiles are set to be deployed in Kumamoto Prefecture by March 2026, a year earlier than initially planned to bolster defence readiness in Japan’s southwest, close to the East China Sea.
Additionally, 100 billion yen will be spent developing and deploying unmanned systems under a new defence initiative known as SHIELD, which includes air, surface, and underwater drones for continuous reconnaissance and rapid response operations. To accelerate deployment, Tokyo plans to source initial units from foreign suppliers, likely Turkey or Israel, while expanding domestic production capacity.
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Rising Tensions Following Taiwan Remarks
Japan’s defence expansion follows heightened diplomatic strain with Beijing. In November, Prime Minister Sanae Takaichi sparked controversy by suggesting that Japan’s Self-Defence Forces could intervene if China moves militarily against Taiwan remarks that triggered strong opposition from Beijing.
Tensions intensified earlier this month when Chinese aircraft carrier drills near Japan’s southwestern islands led to Japanese protests, after Chinese aircraft locked radar on Japanese planes an act interpreted as preparation for missile firing.
In response to the record military allocation, Chinese Foreign Ministry spokesperson Lin Jian criticized Japan, saying its actions demonstrate “Japanese right-wing forces’ motive to remilitarize and resurrect militarism.” Lin urged Tokyo to reflect on its “aggressive path” amid growing international concern over its military trajectory.
Despite regional criticism, Takaichi’s government remains firm on meeting the 2% defence spending target by March 2028, two years ahead of schedule, underlining Tokyo’s intent to strengthen deterrence and reinforce its alliance with the United States.
