Funding Key to Japan PM Takaichi’s Bid for Defense Expansion

22 Ottobre 2025

Tokyo, Oct. 22 (Jiji Press)–Japan’s new prime minister, Sanae Takaichi, faces the difficult task of securing funds to realize her pledge to strengthen defense capabilities further in an increasingly severe security environment. Her Liberal Democratic Party and its new ally, Nippon Ishin no Kai (Japan Innovation Party), have signed a coalition agreement calling for an early revision of the three key security documents adopted at the end of 2022, namely the National Security Strategy, the National Defense Strategy and the Defense Buildup Program. The government is increasing its defense spending to bring the annual amount to around 2 pct of gross domestic product. Takaichi hopes to accelerate the expansion further. Over the five years through fiscal 2027, the total defense spending planned by the government reaches roughly 43 trillion yen. The government plans to secure part of the money by raising corporate, income and tobacco taxes, but the thorny issue of when to raise the income tax remains unresolved. During the LDP’s leadership race this month, Takaichi emphasized that her administration would boost the defense spending further. Any such increase, however, would require a clear funding plan and support from ruling lawmakers including those of partner Nippon Ishin. Takaichi also pledged to realize the swift enactment of antiespionage legislation. The LDP introduced such legislation in 1985 under then Prime Minister Yasuhiro Nakasone, but it was scrapped amid strong opposition. The main opposition Constitutional Democratic Party of Japan and the LDP’s former coalition partner, Komeito, are cautious about such legislation. Debates on the issue could be protracted. Other hawkish measures in the coalition agreement include acquiring submarines using a next-generation propulsion system enabling longer-distance, longer-term operations. The pact does not rule out the use of nuclear power. The agreement also calls for expanding the range of defense equipment that can be exported to other countries. The current government guidelines allow only finished products related to rescue, transport, warning, surveillance and minesweeping to be transferred overseas. However, Takaichi aims to remove this restriction. Her plans also include establishing state-run defense equipment factories. Takaichi, who has long advocated enhancing her country’s intelligence capabilities, is expected to start work to design new organizations as the coalition pact proposes upgrading the Cabinet Intelligence and Research Office to a national intelligence bureau and establishing a foreign intelligence agency. With China, Russia and North Korea stepping up military cooperation, regional tensions continue to rise. Meanwhile, a more inward-looking United States under President Donald Trump has made it even more important for like-minded nations to strengthen cooperation. Defense Minister Shinjiro Koizumi’s handling of such problems is also likely to draw attention. END [Copyright The Jiji Press, Ltd.] 

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