‘Security’ takes Japan’s next fiscal budget to record high

By Riyaz ul Khaliq

ISTANBUL (AA) – Japan will be spending a record budget next fiscal with defense costs rising to a historic high, the government said on Friday.

A draft budget for 2023 approved by the government led by Prime Minister Fumio Kishida saw Japan’s total spending witnessing a record rise to 114.38 trillion yen ($865 billion).

The rise to record levels in the budget for the coming year comes amid Japan’s focus to bolster defense capabilities, with social security costs continuing to rise.

Tokyo, which is part of the US-led Quad that includes Australia and India as well, will be spending 6.8 trillion yen ($51.7 billion) on defense, an annual increase of 26.3%.

Quad is a loose security alliance aimed at containing China’s expanding economic and security influence in the wider Asia-Pacific region.

It will include costs related to the realignment of the American forces stationed in Japan.

There are some 50,000 American soldiers deployed in Japan under a bilateral security pact with the US.

“Despite an estimated record tax revenue of 69.4 trillion yen, it is still not enough to fund ballooning spending, prompting the government to turn to bond issuance,” Tokyo-based Kyodo News reported.

Japan has ramped up its defense capacity including steps to attain “counter-strike capability” as revealed in its updated National Security Strategy released last week.