Japan will retain its goal of restoring its fiscal health by fiscal 2025 despite a substantial increase in defense spending in the coming years to respond to growing security threats, Finance Minister Shunichi Suzuki said Friday.
Suzuki rejected calls from some ruling party lawmakers to issue new government bonds for the planned ¥43 trillion ($315 billion) in defense spending, saying at a news conference that other stable funding sources are necessary.
Japan is planning to boost its defense spending to around 2% of gross domestic product in fiscal 2027, likely earmarking a total of ¥43 trillion over the next five years.