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Japan reveals hint of new defense spending target in fiscal blueprint

The annual economic policy guidelines referenced goals announced by NATO and two U.S. allies and pledged to "transform the country's defense capabilities within five years."

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Japan reveals hint of new defense spending target in fiscal blueprint

The Self-Defense Forces' Type 16 mobile combat vehicle fires during a joint live-fire drill with U.S. Marines as part of the annual Resolute Dragon exercises in Yufu, Oita Prefecture, on June 28. | REUTERS

Jul 21, 2026

Japan just got a tiny bit closer to revealing how substantial its increases in defense spending in the coming years are expected to be.

The government’s annual economic and fiscal policy guidelines approved by the Cabinet on Tuesday did not lay out a specific numerical defense spending target for Japan — but it did offer a marker, referencing goals announced by NATO and two other U.S. allies and pledging to “transform the country’s defense capabilities within five years.”

This marker is expected to lay the foundation for a clearer target to be outlined in the country’s three key national security documents that are scheduled to be revised by the year-end.

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