Japan's defense ministry seeks a record ¥8.9 trillion budget for fiscal 2027.
The final figure may exceed ¥10 trillion after security document revisions.
The request focuses on AI, drones, and counterstrike capabilities.
What happened
The Defense Ministry submitted a record ¥8.9 trillion ($56 billion) budget request for fiscal 2027, the final year of a five-year, ¥43 trillion plan. The request includes AI for command and control, hypersonic underwater-launched missiles, and drones.
Why it matters
The figure is widely expected to rise as Japan revises its three key national security documents by year-end. Some officials say it could top ¥10 trillion, in part due to U.S. pressure to spend 3.5% of GDP on defense, while Japan claims it already spends around 2%.
What to watch
The request includes ¥8.7 billion for UAVs, ¥36.3 billion for small attack drones, and ¥9.5 billion for uncrewed ground vehicles. It also outlines a new state-backed entity and a shift toward a government-owned, contractor-operated model for some defense businesses.
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The record request reflects Japan's response to regional security challenges from China, North Korea, and Russia, as well as pressure from the U.S. under President Donald Trump to increase defense spending. The inclusion of AI and drones aims to prepare for 'new ways of warfare,' but the ministry's focus on technology raises questions about manpower, as experts like Masashi Murano note the need to rethink force design and cut crewed platforms to staff uncrewed systems.
The request also signals a larger government role in the defense sector, with plans for a state-backed entity and a shift toward a GOCO model. However, legal changes are needed for permanent government ownership of facilities, with media reports suggesting legislation could come as early as next year. The emphasis on the Pacific flank, including deploying MQ-9B SeaGuardian UAVs and new bureaus, underscores Japan's focus on protecting sea lanes and responding to intensified military activities by neighbors.
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