Japan approves record budget with focus on defense, social welfare

Dec. 27, 2024

ERBIL (Kurdistan24) - Japan's government has agreed on a record budget for the forthcoming fiscal year, underscoring increased military spending to cope with regional security threats and improved social welfare payments to support its aging population.

The Japanese Defense Ministry stated that Japan is facing its "most severe and complex" security environment since World War II.

Beginning April 1, the annual budget totals 115.5 trillion yen (approximately 703 billion euros), representing a 1.6% increase from the previous year.

Military spending accounts for 8.7 trillion yen, while social welfare expenditure reaches 38.3 trillion yen.

Japan's post-World War II constitution restricts the country to upholding defensive abilities rather than offensive military power.

However, the nation revised its security and defense policies in 2022, referring to concerns about China's regional influence. The government intends to raise defense spending to 2% of GDP by 2027, up from the previous 1% target.

The latest data released Tuesday unveils Japan's demographic challenges, with 29.3% of its population now over 65 years old.

This aging population trend has noteworthy effects on social welfare spending and economic planning. The country's defense policy change signifies its most important military expansion since World War II, mirroring changing regional security dynamics in East Asia.