Japan defense spending may rise beyond the current 2 percent of GDP, according to sources close to the Defense Ministry. A government panel, launched in February 2024, is finalizing a proposal that recommends higher military investment. Former Japan Business Federation chair Sadayuki Sakakibara leads the panel, which includes security, economy, and tech experts.
The draft suggests deploying long-range submarines, including nuclear-powered ones. These submarines could strike from outside enemy missile range. The panel says such systems would strengthen Japan’s deterrence capabilities. Importantly, the proposal urges the government to consider nuclear propulsion “without taboos.” That marks a possible shift from Japan’s current policy on peaceful atomic energy.
Although the idea may trigger debate, the panel argues that Japan defense spending must reflect today’s security environment. They believe limiting options could weaken Japan’s strategic position. The current Defense Buildup Program aims to spend 43 trillion yen by 2027, reaching the 2 percent GDP target. But the new draft encourages reaching the target ahead of schedule and planning beyond it.
For years, Japan kept its military budget around 1 percent of GDP. Now, growing regional threats have changed priorities. The panel says future strategy must include AI and unmanned systems. The recommendation follows a May incident when a Chinese military helicopter entered Japanese airspace near the Senkaku Islands. That breach has increased calls for stronger surveillance and defense.
As a response, the panel proposes using unmanned aircraft for 24-hour aerial monitoring. It also calls for integrating artificial intelligence into defense planning. Japan defense spending must also support emerging technology to remain competitive, the panel says. Western powers and China already lead in this field.
To move forward, the government must solve funding issues and legal questions about nuclear-powered assets. Even so, the panel urges action without delay. Japan defense spending remains a key issue as the country seeks to modernize its forces and defend its territory more effectively.
