Japan To Increase Defence Budget To 2% Of GDP In 2027

Japanese Prime Minister Fumio Kishida has directed cabinet members to raise Japan's defence budget to around 2 per cent of GDP in the fiscal year 2027

Kishida gave those instructions to Defence Minister Yasukazu Hamada and Finance Minister Shunichi Suzuki on Monday, as Japan prepares to increase its defence budget in the fiscal year beginning April 2027.

According to local media, this is the first time the Prime Minister has stated a specific level of defence costs.

According to the Xinhua news agency, Japan's initial fiscal 2022 budget was 5.4 trillion yen (nearly USD 39.3 billion).

According to Nikkei Asia, the government will determine the budget size and secure funding for the next five years by the end of December, hoping to change Japan's post-World War II security strategy.