Japan Approves Record 122.3 Trillion Yen 2026 Budget

Japan's Cabinet approved a draft national budget on Friday for fiscal year 2026, totaling a record 122.3 trillion yen, with unprecedented allocations for defense, social programs and emerging technologies amid rising regional security concerns and domestic economic pressures.

The budget, which begins in April 2026, marks the 14th consecutive year of record-high defense spending at 9.04 trillion yen, an increase of 3.8 percent from the current fiscal year. Officials described the plan as advancing Japan's goal of reaching 2 percent of gross domestic product for defense by March 2026, two years ahead of schedule. Key investments include 970 billion yen for standoff capabilities, such as upgraded Type-12 surface-to-ship missiles with a range of about 1,000 kilometers, and 178 billion yen for acquiring a scramjet-powered hypersonic weapon capable of speeds over Mach 5. Another 100 billion yen targets unmanned systems, including drones for air, sea and underwater operations, to support the Synchronized, Hybrid, Integrated and Enhanced Littoral Defense program launching by the end of fiscal 2027.

The spending reflects Japan's response to a deteriorating security environment,...