(Bloomberg) -- Japan’s Defense Ministry is requesting a record budget allocation for next fiscal year as it aims to ramp up its military capabilities at a time of heightened regional tensions.
The ministry will seek about ¥8.5 trillion ($59 billion) for its portion of the national budget for the fiscal year starting in April, a 10.5% increase from the current year’s initial budget. The record request includes funds needed to build a new satellite intelligence-gathering system to improve missile detection capabilities.
The budget increase is in line with Prime Minister Fumio Kishida’s pledge to boost the nation’s military spending to ¥43 trillion over the five-year period that runs through March of 2028.
Military tensions in East Asia show no sign of abating, with North Korea continuing to launch missiles while also unveiling new weapons. A Chinese military plane entered Japanese airspace on Monday for the first time, drawing a rebuke from Japan’s top government spokesman as a violation of the nation’s territory and threat to security.
Defense policy and spending will be among the issues discussed when the Liberal Democratic Party’s leadership race formally kicks off on Sept. 12. Most candidates in the contest that will determine the nation’s next premier have yet to reveal their policies, but it is unlikely any will press the case for scaling back the plans to expand defense spending.
Among those who have declared their candidacies, Shigeru Ishiba a former defense minister, suggested in July that defense spending might need to be increased further because the five-year spending plan was compiled when the yen was stronger and costs of equipment have increased as the currency subsequently weakened.
The proposed budget includes ¥323 billion for developing a “satellite constellation” aimed at improving missile detection capabilities. The system, which links multiple small satellites in a specific orbit to collect integrated information, is slated to become operational by March 2028.
Separately, the military is requesting around ¥113 billion to develop next-generation fighter aircraft in a joint effort between Japan, UK and Italy.
The bulk of the remainder will go toward maintaining equipment, as well as acquiring and making fighter aircraft and submarines. The ministry is also seeking funds to better attract and retain talent, including salary bumps for Self-Defense Force officers and personnel.
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