Japan’s government announced an accelerated plan to raise security spending to 2% of gross domestic product within fiscal 2025. Prime Minister Sanae Takaichi outlined the policy in her first speech to both chambers of the Diet. Security spending was initially planned for fiscal 2027 but now will be implemented two years ahead of schedule.
During the speech, Takaichi emphasized responsible expansionary fiscal policy. She also prioritized tackling high prices to protect citizens’ livelihoods. The government pledged supplementary budgets to meet the security spending target. The initial allocation of ¥9.9 trillion would rise to about ¥11 trillion, requiring an additional ¥1 trillion.
Moreover, Takaichi confirmed plans to revise three security-related documents, including the Defense Buildup Program, within the next year. She stressed cooperation across ruling and opposition parties for a supplementary budget addressing price hikes, including abolishing the provisional gasoline tax. The government also intends to expand grants for local governments and provide winter support for electricity and gas bills.
Takaichi highlighted medium- and long-term strategies to strengthen the Japanese economy. She proposed strategic fiscal stimulus to create a virtuous cycle of rising incomes and tax revenue. Additionally, the government announced the Japan Growth Strategy Council to guide economic growth, focusing on crisis management, food security, and investment in strategic sectors.
Social security reform and support for working generations were also emphasized. The Prime Minister proposed a bipartisan national conference and a combined system of direct cash payments and tax credits. On immigration, she committed to combating illegal acts while clearly opposing xenophobia and reviewing foreign land acquisition rules.
Finally, Takaichi addressed international relations. She stated that the upcoming visit of U.S. President Donald Trump would elevate Japan-U.S. ties. She also committed to maintaining a strategic and mutually beneficial relationship with China while noting ongoing security concerns.
Security spending remains the core focus of these initiatives, reflecting Japan’s urgency to strengthen defense capabilities, stabilize the economy, and address domestic and regional challenges.
