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Japan Approves Record Defense Spending Increase for FY2025

Japan has announced a 9.4 percent increase in its defense budget for fiscal year 2025, marking the 11th consecutive year of record defense spending. This decision reflects Tokyo’s commitment to strengthening its military capabilities in response to escalating regional security challenges.

Background

On December 27, 2024, the cabinet of Prime Minister Ishiba Shigeru approved an 8.7 trillion yen ($55.1 billion) defense budget for the fiscal year beginning in April 2025. This move is part of Japan’s ongoing Defense Buildup Program, which earmarks $273 billion for military modernization and development over a five-year period ending in FY2027.

Key Defense Initiatives

The FY2025 budget focuses on seven strategic priorities aimed at bolstering Japan’s military readiness and operational capabilities:

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1. **Stand-off Defense Capabilities**: Allocating approximately $5.95 billion for the development and production of long-range missile systems.
2. **Comprehensive Air and Missile Defense**: Enhancing defenses against airborne threats, including missiles.
3. **Unmanned Asset Defense**: Investing in advanced drone technologies and unmanned systems.
4. **Cross-Domain Operational Capabilities**: Strengthening operational capacities in space, cyberspace, and electromagnetic domains.
5. **Command and Control and Intelligence Functions**: Improving command structures and intelligence-gathering mechanisms.
6. **Maneuvering and Deployment Capability**: Enhancing logistics and rapid deployment capabilities.
7. **Sustainability and Resiliency**: Ensuring operational sustainability and infrastructure resilience.

Strategic Context

This budget increase comes amid growing security concerns over the activities of China, North Korea, and Russia in the region. Japanese officials have described the current geopolitical landscape as “the most severe and complex security environment since the end of World War II.” The increased funding aims to address these challenges by developing advanced military technologies and enhancing national defense.

Future Outlook

As Japan moves forward with its Defense Buildup Program, further investments in cutting-edge military systems are expected. The FY2025 budget not only underscores Japan’s resolve to safeguard its sovereignty but also signals its intention to play a more assertive role in maintaining regional stability.

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