2024 RT Amination Banner.gif

China Daily

Asia Pacific> Asia News> Content
Published: 13:02, December 02, 2022 | Updated: 13:04, December 02, 2022
Sources: Japan eyes 40-45 trln yen for 5-year defense spending plan
By Reuters
Published:13:02, December 02, 2022 Updated:13:04, December 02, 2022 By Reuters

Banknotes of Japanese yen are seen in this illustration picture taken Sept 23, 2022. (FLORENCE LO / ILLUSTRATION / REUTERS)

TOKYO- Japan is set to earmark 40 trillion to 45 trillion yen ($295 billion-$333 billion) for defense spending over five years starting in the next fiscal year, which begins in April, three sources with knowledge of the matter told Reuters on Friday.

That would be a jump from the current five-year defense plan for spending 27.5 trillion yen, 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.

Prime Minister Fumio Kishida told key ministers on Monday to work on a plan to lift defense spending to an amount equivalent to 2 percent of gross domestic product within five years, from 1 percent now

ALSO READ: Japan's power saving scheme goes into effect amid supply concerns

Prime Minister Fumio Kishida told key ministers on Monday to work on a plan to lift defense spending to an amount equivalent to 2 percent of gross domestic product within five years, from 1 percent now.

The key ministers - Finance Minister Shunichi Suzuki and Defence Minister Yasukazu Hamada - are expected to meet again with Kishida this month to iron out differences over the spending plan.

Defence authorities had informally floated an idea of spending in the upper range of 40 trillion yen over five years, while finance bureaucrats had sought spending along the lines of the current five-year plan.


Share this story

CHINA DAILY
HONG KONG NEWS
OPEN
Please click in the upper right corner to open it in your browser !