Japan has warned defense 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.Finance Ministry officials last week proposed spending between ¥50 trillion ($313 billion) and ¥60 trillion on defense over the five years starting in April 2027, the people familiar with the proposal said.That would exceed the current ¥43 trillion five-year plan but fall well short of the ¥80 trillion advocated by some defense officials and ruling Liberal Democratic Party lawmakers.
Finance Ministry looks to rein in defense spending push amid funding concerns
The revised spending proposal could mean cuts by as much as half in planned purchases of some missiles and aircraft.
In brief
Japan has warned defense 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.Finance Ministry officials last week proposed spending between ¥50 trillion ($313 billion) and ¥60 trillion on defense over the five years starting in April 2027, the people familiar with the proposal said.That would exceed the current ¥43 trillion five-year plan but fall well short of the ¥80 trillion advocated by some defense officials and ruling Liberal Democratic Party lawmakers.
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