Japan Seeks Record Defense Budget but Falls Short of 2% Goal

Japan's Defense Ministry has requested an unprecedented 8.9 trillion yen for the next fiscal year, a record high and 0.9% more than this year. This request falls short of the government's target of 2% of gross domestic product (GDP), or 13.8 trillion yen.

The ministry based its request on an exchange rate of 149 yen to the dollar, but the currency has recently traded near 160 yen. The weaker yen played a role in the gap between the target and the actual budget.

The Japanese government aims to strengthen defense capabilities under Prime Minister Sanae Takaichi's plan. Priorities in the budget include unmanned platforms, artificial intelligence projects, and better working conditions for service members.