Japan’s 2025 Defense Budget Gets Historic Increase

The Cabinet of Japan, Record defense budget for fiscal 2025 The budget, set at 8,7 trillion yen ($55,1 billion), saw a 13th consecutive year of growth, reflecting Japan's efforts to strengthen its military readiness to counter growing threats in the region.

Regional Security Threats and Japan's Strategy

Japan's defense policies are shaped by the following threats in particular:

  1. China's Interventions in the Southwestern Archipelago: Japan is concerned about China's growing military presence in the region.
  2. Russia and North Korea: The risks posed by missile and nuclear programs are seen as a serious threat.
  3. Taiwan's Situation: Japan believes that a possible conflict in Taiwan would have direct implications for its security.

2024 Japan Defense White PaperHe stressed that the country is in the most serious and complex security environment it has faced since World War II.

Defense Programs and New Investments

The new budget focuses particularly on modern weapons systems and increasing regional defense capacity:

  • Remote Control Weapons: Land- and sea-launched Type 12 anti-ship missiles, hypervelocity glide projectiles, and submarine-launched missiles.
  • Air and Missile Defense: 533 billion yen has been set aside for missile defense systems and mobile radars in critical areas such as Okinawa.
  • Unmanned Aerial Vehicles: Two MQ-9B SeaGuardian and six V-BAT drones will be purchased.
  • Purchases from the USA: For F-35A aircraft Kongsberg Joint Strike Missiles, for destroyers Tomahawk Cruise Missiles, and significant resources were allocated to extended-range JASSM-ER missiles for the F-15 aircraft.

Defense Cooperation Between the US and Japan

Much of Japan’s defense spending is based on cooperation with the United States, but analyst Grant Newsham said Japan’s long-standing “pathological dependence” on the United States limited its ability to effectively use its own defense force independently.

Newsham also said Japan acknowledges threats from China, North Korea and Russia, but its Self-Defense Forces have not yet reached a combat-ready capacity.

Budget Increase and Yen Weakness

Japan’s spending on U.S.-sourced weapons systems is increasing due to the weaker yen. For example, an additional 2023 billion yen was paid for Foreign Military Sales equipment in fiscal 123,9.

Japan is committed to bolstering its defense capabilities in the face of regional security threats, but its dependence on the United States and the deficiencies of its domestic defense infrastructure mean that progress needs to be made in the country’s military posture.
However, the 2025 defense budget is seen as a major step towards Japan's military modernization.