Japan is set to earmark ¥43 trillion ($295 billion to $318 billion) for defense spending over five years starting in the next fiscal year, which begins in April, three sources with knowledge of the matter said Friday.
That would be a jump from the current five-year defense plan for spending ¥27.5 trillion, stoking worry about worsening one of the industrial world's worst debt burdens, which amounts to twice the size of Japan's annual economic output.
The new numbers marked a compromise between the defense and finance ministries, the three sources said. Until recently, the Defense Ministry had sought ¥48 trillion, while the Finance Ministry had multiple options centering around ¥35 trillion.