Japan’s government recently approved its fiscal 2026 budget on December 26, 2025, setting its defense spending at a record 9.04 trillion yen (about $58 billion). This marks the 14th year of consecutive increases, with defense outlays surging 67 percent compared to fiscal 2022. 🛡️
Under Prime Minister Sanae Takaichi, the budget zeroes in on:
- Upgrading drone combat systems, including offensive models 🚀
- Boosting long-range strike and missile defense capabilities 🎯
- Advancing space and emerging-domain strategies 🌌
- Strengthening forces in southwestern Japan 🌊
These steps signal a clear shift from Japan’s post-WWII "exclusively defense-oriented" policy, enshrined in its pacifist constitution, toward a more assertive military role. Takaichi has even hinted that nuclear-powered submarines aren’t off the table, and talks are underway to revise long-standing non-nuclear principles.
But can Japan balance this military build-up with public welfare? Recent economic data suggests challenges ahead. A report from the Cabinet Office on December 8, 2025, showed real GDP fell 0.6 percent in Q3, an annualized drop of 2.3 percent. Exports continue to slump under U.S. tariff hikes, while structural issues—stagnant growth, high inflation, weak domestic demand and mounting debt—weigh heavily. 📉
Household budgets are already tight. Core consumer prices climbed 3.0 percent year-on-year in November, marking the 51st straight month of rising costs. At the same time, social security spending for fiscal 2026 topped a record 39.1 trillion yen, as Japan’s aging population pushes up healthcare, nursing care and pension costs. 💰
Japan faces a tough trade-off: fueling a stronger defense or investing in public livelihoods. As the debate heats up, young Japanese—like those across Asia—are watching closely. Which path will shape their future? 🤔
Reference(s):
Takaichi's real agenda: Military expansion or public livelihood?
cgtn.com
