TOKYO: Japan’s Defense Ministry plans to make a budget request of over 5.5 trillion yen for fiscal 2023, which starts next April, Jiji Press learned Tuesday.

The budget request is expected to set a new record high, topping the current record of 5,489.8 billion yen, sought for fiscal 2021. The actual budget hit a record high of 5,400.5 billion yen for fiscal 2022.

On top of the possible 5.5-trillion-yen request, the ministry is expected to ask for unspecified funds for certain measures.

In May, Prime Minister Fumio Kishida said at a summit meeting with U.S. President Joe Biden that the Japanese government will increase defense spending substantially.

In June, the government adopted basic economic and fiscal policy guidelines that mention NATO’s defense spending target for its members of 2 pct of gross domestic product.

The government plans to consider the country’s defense expenditures in the budget compilation process.

Unspecified defense funds, meanwhile, will be determined through talks with the ruling parties by late this year, when the government are slated to revise its three key defense-related documents.

There are calls from the ruling Liberal Democratic Party for allocating 6.5 trillion yen for defense costs.

On how to fund an increase in defense spending, Kishida has said that the government must comprehensively consider the “content, budget and funding source” of the envisaged strengthening of the country’s defense capabilities.

The government may issue bonds, increase taxes or cut social security spending, observers said.

JIJI Press