Japan seeks 8.9 trillion yen for fiscal 2027 defense budget

Ministry cites China as security driver behind proposed increase

Japan’s Ministry of Defense said Monday it is requesting 8.9 trillion yen, approximately $55.6 billion, for the fiscal year that begins in April 2027, prioritizing drones, missiles and ammunition stockpiles in what officials describe as the most severe security environment since World War II.

The proposal does not include additional spending tied to the U.S. military presence in Japan. Once that figure is finalized, the total is likely to surpass the record 9 trillion yen budgeted for the current fiscal year.

Even so, the size of the proposed uplift falls short of the 3.5% to 5% of gross domestic product that the Trump administration has called on U.S. allies to spend on defense. Japan’s existing outlays sit at 2% of GDP, a mark reached two years ahead of schedule in the current fiscal year.

Prime Minister Sanae Takaichi increased the fiscal 2026 defense budget by 3.8% year-over-year. Even after that increase, Japan still trails other U.S. allies in the region. Taiwan has floated a 2027 defense budget approaching 4% of GDP, while South Korea spent around 2.3% of GDP in 2025 and is aiming to lift that figure to 3.5% by 2035.

In its budget request, the Ministry of Defense framed the fiscal 2027 priorities as preventing conflict and preparing for one. “Preventing conflicts before they arise, as well as withstanding a protracted conflict, are essential for strengthening Japan’s defense capabilities,” the ministry said, citing lessons drawn from the war in Ukraine.

The request covers funding for ammunition, guided missiles, transport aircraft and research into autonomous navigation technology. Like other governments, Japan is also examining how to incorporate drones and similar autonomous systems into its defense planning. At a briefing for reporters, one defense official pointed to U.S. firm Anduril’s Barracuda system — a low-cost flying drone that functions as a kind of cruise missile — as an example of the affordable weapons Japan is weighing.

Japanese defense officials described the security environment surrounding the country as the most severe since World War II, citing the growing frequency of Chinese and Russian ships sailing close to Japanese territorial waters and warplanes skirting Japanese airspace. Rising defense outlays among U.S. allies in Asia reflect both pressure from Washington and the growing military capabilities of China, North Korea and Russia, according to officials.

The budget request lands as the United States, South Korea and Japan prepare to undertake joint military drills next week. The trilateral exercise, called Freedom Edge, will test allied capabilities at sea and in the air, and follows President Trump’s decision in August to scale back bilateral exercises with South Korea — a move that, according to the source, rattled allies in the region. A spokesperson for North Korea’s Foreign Ministry called the exercise “a threat to North Korea and the wider region” in a statement Monday.

The fiscal 2027 budget now moves into Japan’s broader deliberations, where the final figure and additional allocations — including those tied to the U.S. military presence — will be determined before the fiscal year begins in April.