Japan's state budget for fiscal 2023 will likely hit another record of around ¥114.3 trillion ($839 billion), with a roughly fourfold increase in spending on ammunition and long-range missiles set to lift defense outlays to their highest-ever level, sources familiar with the plan have said.

The government is expecting to allocate ¥828.3 billion for ammunition-related spending, a sharp increase from around ¥200 billion in recent years, as part of Japan's drive to bolster its defense capabilities, the sources said Monday.

The overall defense budget, which includes costs related to the realignment of U.S. forces in Japan, will likely rise to ¥6.8 trillion in the next fiscal year from April, up from ¥5.4 trillion in the current year.