The Japanese government revealed a record annual budget of 830 billion euros for the 2022/23 fiscal year and includes an unprecedented amount for defense, in a tense geopolitical atmosphere.
Japan’s defense budget is rising for the 10th consecutive year, as tensions with China and risks posed by North Korea raise concern in the archipelago.
The Japanese Ministry of Defense stressed its concern about the “increasingly dangerous” regional security situation that is deteriorating “at an unprecedented speed”, and requested for the next fiscal year starting on April 1, 2022, a record budget of 5,400 billion yen (41.7 billion euros).
This budget includes more than 5.3 trillion yen Initially required for the current fiscal year, an amount of 127.8 billion yen to buy 12 F-35 fighters.
The Defense Ministry also said it wants to increase Japan’s defense capabilities in space and in terms of cybersecurity. It also announced at the end of November its intention to seek an additional budget of 773.8 billion yen for the current fiscal year.
In addition to this military spending, the total budget of 107.6 trillion yen (830 billion euros), which the government unveiled on Friday and will be considered by parliament early next year, will partially finance Prime Minister Fumio Kishida’s massive stimulus package.
With this plan, the Japanese official, who came to power in early October, intends to give impetus to the third largest economy in the world while the pandemic continues.
A key measure of the plan is to distribute 100,000 yen (772 euros) to all 18-year-olds, except for members of high-income families.
Although the government wants to boost growth with this plan, some analysts warn of a rise in Japanese debt, which exceeds 250% of GDP according to the International Monetary Fund.