Japan’s Defense Ministry Requests Record $60.1 Billion for 2027

Japan’s Ministry of Defense has requested a record ¥8.9 trillion ($60.1 billion) for fiscal year 2027, as Tokyo continues to expand its defense capabilities.

The figure was reported on August 7 by Japanese outlet 47NEWS, citing several government officials.

If approved in full, the request would mark the largest defense budget in Japan’s history.

The final amount could be even higher. The ministry plans to include a number of budget requests without specifying fixed amounts, allowing funding requirements to be determined later in the budget process.

A senior government official said Japan’s final defense spending could reach approximately ¥10 trillion ($67.57 billion) once the budget process is completed.

Drones and AI

One of the priorities for the 2027 budget will be the development of new capabilities for modern warfare.

The Ministry of Defense plans to fund the deployment of interceptor drones designed to counter other unmanned systems. Japan is already accelerating efforts to identify suitable interceptor drone technologies as the threat from enemy UAVs continues to grow.

The ministry also plans to expand the use of artificial intelligence in command and control of the Japan Self-Defense Forces.

Tokyo views AI and unmanned systems as key elements of its efforts to adapt the military to the changing character of warfare, including the growing role of autonomous and automated systems on the battlefield.

Japan’s current defense buildup plan for fiscal years 2023–2027 calls for approximately ¥43 trillion ($290.54 billion) in total defense spending.

Expanding domestic defense production

The increase in defense spending is also intended to strengthen Japan’s domestic defense industry.

The Ministry of Defense plans to provide companies with advance information on planned procurement volumes, allowing them to prepare production capacity and make long-term investment decisions.

Starting in fiscal year 2027, companies are expected to receive advance information on planned purchases of ammunition, drones, and other military equipment.

The ministry aims to make it easier for defense contractors to develop medium- and long-term business plans while encouraging capital investment and the entry of new companies into the defense sector.

The initiative is intended to expand domestic production capacity and improve Japan’s ability to sustain military operations over the long term.