Japan approves 2023 draft budget at $ 862 bn with record defence allocation

Japanese govt approved a draft budget for the next fiscal year for a record 114,38 trillion yen with a record-high defence budget in the amount of 6.8 trillion yen, Japanese media reported on Friday

The Japanese government approved a draft budget for the next fiscal year for a record 114,38 trillion yen (USD 862 billion) with a record-high defence budget in the amount of 6.8 trillion yen, Japanese media reported on Friday.

Japan's military spending amounted to 5 .4 trillion yen in 2022, which is about 1.24 per cent of GDP, Kyodo news agency reported.

The growth of the defence budget is connected with the government's decision to ensure an increase in defence spending to 2 per cent of the country's gross domestic product by 2027, which is approximately 11 trillion yen per year.

The draft budget for the year 2023-2024 also provides for the allocation of about 3 trillion yen to ensure future defence capability and weapons development.

Now the draft budget will be sent to the Japanese Parliament for consideration.

According to Kyodo news, the defence budget rose to 6.8 trillion yen, including costs related to the realignment of U.S. forces stationed in Japan. That was a sharp climb from 5.4 trillion yen in the current fiscal year, the report added.

In a bid to make up for the increase in defence spending, the Japanese government has decided to raise taxes, cut spending in other areas and tap surplus funds.

Japan is finding itself in the midst of the most severe and complex security environment since the end of WWII with mounting threats from China and North Korea.

Japan has responded with what they call a "major shift" in defence policy. The new strategy does away with decades of precedent to acquire counter-strike capabilities, with a special focus on a free and open Indo-Pacific (FOIP).

Japan is planning to build a multilayered network among its allies and like-minded countries, expand it, and strengthen deterrence.

Utilizing frameworks such as the Japan-US-ROK, and Japan-US-Australia, Japan plans to enhance security cooperation with Australia, India, the ROK, European countries, ASEAN countries, Canada, NATO, EU, and others.