Japan PM Takaichi vows to boost defense spending to 2% of GDP by March

Hello r/Japan. It’s Dave again from the audience engagement team at Nikkei Asia. 

I’m sharing a free portion of the article above for anyone interested.

The excerpt starts below.

— — —

TOKYO — Japanese Prime Minister Sanae Takaichi, in her first policy address to parliament on Friday, unveiled a plan to lift Japan's defense-related spending to a level equivalent to 2% of gross domestic product in the current fiscal year ending March 2026, while also outlining a list of economic goals that she said can be achieved without raising taxes.

If met, the increase in defense outlays would come two years ahead of the current plan for achieving the 2% target by the end of a five-year buildup through March 2028.

The achievement would bring Japan in line with Western nations, as NATO members, under pressure by U.S. President Donald Trump, are expected to meet the target of at least 2% of GDP in defense spending in 2025. The organization is committed to increasing such outlays to 5% of GDP by 2035. Japan's initial defense budget for the current fiscal year was 1.8% of GDP.

Elected by lawmakers as prime minister on Tuesday, Takaichi also said in the address that three national security documents relating to security strategy, defense strategy and the defense buildup program will be updated by the end of 2026.

by NikkeiAsia

14 comments
  1. 西側の真似をして何になるんや。

    アメリカというかトランプに振り回されるだけになりそうや。

  2. It seems like China,Russia and North Korea are all cooperating and supporting each other. They all have territorial ambitions. This is very dangerous for Asian and European democracy. To ignore this threat is to invite invasions. Pacifism will not work unless everyone is pacifist. It sucks but this how things are at the moment. 2020-40 will be a massive inflection point in world history.

  3. More on this subject from other reputable sources:


    – Irish Examiner (B-): [Japan’s new leader vows to bolster defence as regional tensions rise](https://www.irishexaminer.com/world/arid-41729955.html)
    – Mainichi Shimbun (C): [Japan PM Takaichi stresses aggressive fiscal policy, higher defense costs – The Mainichi](https://mainichi.jp/english/articles/20251024/p2g/00m/0na/041000c)
    – Japan Today (B): [Takaichi, in first policy speech, vows to further bolster defense buildup](https://japantoday.com/category/politics/takaichi-in-first-policy-speech-vows-to-further-bolster-defense-buildup)
    – Jakarta Post (B): [Japan government says Trump to visit country for 3 days from Monday](https://www.thejakartapost.com/world/2025/10/22/japan-government-says-trump-to-visit-country-for-3-days-from-monday.html)


    [__Extended Summary__](https://www.reddit.com/r/newswall/comments/1oexdsk/) | [FAQ & Grades](https://www.reddit.com/r/newswall/comments/uxgfm5/faq_newswall_bot/) | I’m a bot

  4. yeah because this is the most important problem Japan is facing, you guys can’t even stop americans from raping everyone on Okinawa with impunity. lol.

  5. good. japan is physically close to china, russia and north korea, and the situation in ukraine has made it abundantly clear that countries shouldn’t rely on the west bailing them out if the shit hits the fan.

    japan needs to be self sufficient in terms of defense.

  6. “*Japanese Prime Minister Sanae Takaichi, in her first policy address to parliament on Friday, unveiled a plan to lift Japan’s defense-related spending to a level equivalent to 2% of gross domestic product* ***in the current fiscal year ending March 2026****, while also outlining a list of economic goals that she said* ***can be achieved without raising taxes****.*

    *…Takaichi also said in the address that three national security documents relating to security strategy, defense strategy and the defense buildup program will be updated* ***by the end of 2026****.*”

    So, we lift defense-related spending to 2% by **March 2026** but update the defense buildup by **end 2026**? Memories of Abe and Co **first** talking and deciding an increase to 2% **and then** rolling out a plan (i.e putting the cart before the horse).

    Let’s also consider the **VERY optimistic** currency exchange assumptions the whole plan had to start with (article dated Dec 29th, 2024):

    https://www.japantimes.co.jp./news/2024/12/29/japan/japan-defense-spending-inflation/

    “*When the Japanese government formulated its revised defense buildup plan in 2022,* ***it assumed an exchange rate of ¥137 to the dollar for the 2023 budget****, but f****or the four years thereafter it assumed a very optimistic average of ¥108 to the dollar****.*

    “*This means that even if the government achieved 2% of GDP spending by fiscal 2027,* ***it will be impossible to build up the SDF as initially planned given today’s much weaker yen****,” said Masashi Murano, a Japan defense expert at the Hudson Institute think tank.*”

    Today’s/ rate on [xe.com](http://xe.com) is 1 USD = 152.80 JPY.

    Same article:

    “***Persistent recruitment issues****,* ***industrial capacity constraints*** ***and political uncertainty around*** *Prime Minister Shigeru Ishiba’s* ***minority government*** *risk hampering momentum toward the goals, particularly as the ruling Liberal Democratic Party (LDP) and its junior coalition partner, Komeito, this month again* ***postponed a decision on when to raise income tax rates to secure additional funding****.*”

    None of these 3 things have changed since Ishiba got unseated.

    Also,

    “*But* ***the absence of a majority in parliament means*** *Ishiba’s* ***LDP alone can’t push through a budget****. T****he party must negotiate with the opposition, while at the same time reach compromises*** *with Komeito.*”

    Ishiba and Komeito are out of the picture and Takaichi and Ishin are in, but all parties, **including** **Ishin** all call for decreasing or nixing or decreasing the VAT for good or for at least a 1 to 2 year period, making the money available to the J-gov even lower going forward with any raise in taxes would be fought by **every** party, **including Ishin**.

    Basically:

    – recruitment issues and industrial capacity issues makes the whole thing a non-starter to begin with.

    – the initial budgeting was based on overly optimistic currency exchange rates pulled out of thin air.

    – raising taxes was to pay for what is essentially a pre-programmed failure, which is now pretty much impossible.

    Long story short: Takaichi is high as a kite.

Comments are closed.