Japan warns arms suppliers of deep cuts to expected orders due to budget squeeze: Report
The plan would cut some missile and fighter jet purchases by as much as half as Japan weighs competing budget priorities, Reuters reported.
- Last week, the Finance Ministry proposed spending between 50 trillion and 60 trillion yen on defense over five years starting in April 2027, balancing military expansion against fiscal constraints.
- Prime Minister Sanae Takaichi's government seeks to counter China while managing competing priorities: a food sales tax cut would create an annual 4.3 trillion yen revenue shortfall.
- Fiscal limitations could force cuts by as much as half in planned orders for missiles and US-made F-35 stealth fighters, according to four sources familiar with the matter.
- The 80 trillion yen advocated by Liberal Democratic Party security hawks exceeds the proposal, leaving Japan below its 2% of GDP defense spending target, according to Reuters calculations.
- President Donald Trump presses allies to spend 3.5% of GDP on armed forces and 1.5% on security, intensifying pressure on Takaichi as Finance Minister Satsuki Katayama declined early comment on the proposal.
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EXCLUSIVE: Japan warns arms suppliers of deep cuts to expected orders due to budget squeeze, sources say
Japanese officials have warned defence contractors of deep cuts to expected orders as fiscal constraints threaten to scale back a military buildup that Prime Minister Sanae Takaichi's government says is needed to counter China, four people familiar with the matter said.
Japan warns defence contractors of potential cuts to military orders amid fiscal constraints: Report
Japan is facing potential deep cuts to its military spending as fiscal constraints limit future investments. Finance ministry officials propose allocating only 50 to 60 trillion yen for defence over five years. This proposal falls short of the desired 80 trillion yen advocated by some lawmakers and defense officials. The government's efforts to cut the sales tax on food could further hamper funding resources.
Japan is considering cutting its military spending by about 30% over the next five years due to budget constraints.
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- 40% of the sources are Center, 40% of the sources lean Right
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