According to Japan’s Minister of Defense, Shinjiro Koizumi, the National Cabinet has approved a supplementary defence budget for the current fiscal year (FY), a move expected to push Japan’s defence spending to - and beyond - 2% of GDP. The supplementary allocation amounts to 7 billion US dollars (1.1 trillion yen), bringing total defence expenditure for FY25 to 70 billion US dollars (11 trillion yen).

This milestone had originally been scheduled for FY27, in line with the previous Kishida administration’s strategic framework, including the National Security Strategy, National Defense Strategy, and the Defense Buildup Program.

Prime Minister Sanae Takaichi has strongly backed the additional funding, as reflected in her recent Cabinet addresses, where she stressed that Japan’s security environment has deteriorated significantly since those strategic documents were issued. It is worth noting that the supplementary budget does not introduce major new procurement programmes.

According to the latest Ministry of Defense documentation, the Japan Coast Guard will receive the largest share of the additional funding, amounting to 842.7 billion yen out of the 1.1 trillion yen package. Further allocations include 167.4 billion yen for increased personnel pay, improved barracks, and enhanced support facilities; 56.6 billion yen for the acquisition of various munitions, including surface-to-air missiles; and 345.1 billion yen to support the relocation of US Forces in Japan.

To enhance force protection and defensive capabilities, 2.9 billion yen will be allocated for the procurement of counter-drone systems, while 16 billion yen will be used to deploy a mobile air defence system - potentially the Type 03 medium-range SAM - to protect newly installed control radars on Kita Daito Island.

The deployment of military assets on Kita Daito and Yonaguni Island has drawn firm objections from the People’s Republic of China, which has highlighted their proximity to Taiwan. These objections, however, have not elicited a substantive response from Tokyo. Meanwhile, Japan continues to conduct joint exercises with US forces, including the US Marine Corps, on both islands.

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