Japan just unveiled plans for its largest defense budget ever, finalizing to invest $57 billion in strengthening its defense capabilities. Japan has attributed this upgrade in budget towards military requirements to “New Era of Crisis” as mentioned in opening remark of defense budget document.

“The international community is facing the greatest post-war trial yet, and has entered a new era of crisis,”- Japan

Japan began increasing its defense budget 12 years ago under former Prime Minister Shinzo Abe, and it has grown faster because of China’s aggressive actions near Taiwan and the East and South China Seas. This year’s budget is the second year in a row with a big increase, rising by 7.4 percent compared to last year.

Seven Main Area that will be addressed with this increased defense budget are as follows:

1. Stand Off Defense Capabilities- Long Range Weapons & Satellite Constellation
2. Comprehensive air & missile defense capabilities- Defending the threat possibilities from deadly North Korean, Chinese & Russian Missile attacks.
3. Unmanned asset defense capabilities- Expenditure towards developing defense grade drones & associated technologies.
4. Cross domain Operational Capabilities- Acquiring aircrafts capable of electronic warfare, intelligence. surveillance and cyber warfare
5. Command & Control and Intelligence- Bolstering Intelligence Capabilities well supported with Command & Control Stations.
6. Maneuvering & Deployment Capability- The expenditure will help Japan project itself as a major military power.
7. Sustainability & Resiliency- To maintain sustainable fire power, this finance will help Japan to store a sustainable & adequate arsenal of ammunitions, weapons, military accessories, rockets, short range missiles etc.

Additionally, Japan has planned to procure more F-35 Fighter Jets to bolster he air force in light of increased Chinese aggressions and violation of Japanese air space. A Tensed South China Sea is one more catalyst in the increase of defense budget by Japan.

Is Japan leaving Pacifism & Changing Gears with a growing Defense Budget?

Considering the long-standing pacifist ideology, the steep growth in defense budget over the last few years has raised questions over the pacifism ideology. An aggressive China & their activities around Taiwan, Japanese Coast has turned the situation in South China Sea into a flash point. Japan seems to be careful about unpredictability of support from USA post the upcoming presidential elections.

The Incalculable Donald Trump or an extremely balanced Kamala Harris, both are going to bring a situation of confusion in the years ahead.  So, Probably Japan is doing right & setting things in balance, when it comes to its defense budget.

Hence, this may not be an outright abolishment of pacifism, but a careful decision to upgrade Japan’s defense. And to start with Japan has been addressing the most important aspect, i.e. its defense budget.

The Financial Constraints

Japan’s Ministry of Defense and Ministry of Finance will definitely sit together and discuss the financial constraints around the defense budget plans. The defense budget has lot of merits; however Japanese Yen is getting weaker gradually & inflation is also playing a card in the Japanese economy.

Japanese Government & Bank of Japan have been working recently by maintaining ultra-loose monetary policy, currency interventions and several other steps to improve the economy & suppress the inflation.

In this situation, MOD & MOF will carefully examine the merits, timelines of the procurement planned in the defense budget and navigate to successfully implement the plans. It seems Japan is not taking the future threats & risks from China & Russia lightly. Rightly So.

A growing defense budget in Japan will have crucial implications on geo-politics, military stance & South China sea. It will propel Japan to become a stronger military partner of USA & Other Allies & little diluted in its pacifism stance and a fillip to regional security balance.