Defense Ministry to Request Record ¥8.8 Trillion Budget for Fiscal 2026 Amid Concerns over China’s Expanding Influence

The Yomiuri Shimbun

16:08 JST, August 20, 2025

The Defense Ministry plans to request a record-breaking budget of about ¥8.8 trillion for fiscal 2026, amid growing concerns over China’s expanding influence.

This increase is intended to bolster Japan’s defense capabilities in the face of mounting regional security challenges, according to government sources. The focus will be on countering China’s growing military presence by deploying uncrewed aircraft and defending the Nansei Islands.

The initial budget for fiscal 2025 was ¥8.7 trillion, which included costs for the realignment of U.S. forces.

Under the Defense Buildup Program, approved by the Cabinet in December 2022, the government set the total defense budget at about ¥43 trillion for the five years from fiscal 2023 to 2027, which excludes the costs associated with the realignment of U.S. forces. Fiscal year 2026 marks the fourth year of this program.

The ministry will include in its budget request expenses related to the coastal defense initiative “SHIELD,” under which unmanned vehicles will be used in the air, at sea and underwater. The initiative is planned to be established in fiscal 2027. The expenses are for the purchase of the unmanned vehicles and a system to simultaneously control the operation of a number of such vehicles.

To defend the Nansei Islands, the ministry has allocated funds in its budget request to upgrade the Ground Self-Defense Force’s 15th Brigade, located in Naha, to the 15th Division in fiscal year 2026. This upgrade is expected to include the deployment of an additional infantry regiment.

It also specified plans to launch the first Space Domain Awareness (SDA) satellite in fiscal 2026 to enhance space surveillance capabilities.