A ruling Liberal Democratic Party panel on Tuesday called for a boost in Japan's defense budget, which has stayed at around 1 percent of gross domestic product for decades, touching on NATO's 2 percent target as a "reference."

The proposal is part of a midterm report on defense issues worked out by the LDP's Research Commission on Security. The paper will not be submitted immediately to the government, but will be used as a springboard for further discussions in compiling an official proposal by next spring, a senior commission member said.

Touching on North Korea's rapid nuclear and missile development and China's maritime assertiveness, the panel said that "a sufficient" defense budget should be secured to deal with the tough security environment based on a judgment of what equipment is necessary.