Next-Gen Defence Insights

Japan seeks $60B defense budget

Japan’s Ministry of Defense has submitted a record $59.9 billion budget request for fiscal year 2026, continuing its trend of steady annual increases amid rising Indo-Pacific tensions. A central feature of the request is the new Synchronized, Hybrid, Integrated and Enhanced Littoral Defense (SHIELD) program, a multilayered coastal defense system integrating drones and unmanned vehicles across multiple domains.

The SHIELD initiative includes ship- and ground-launched UAVs for reconnaissance and strike missions, along with unmanned surface and underwater systems. Japan is requesting 128.7 billion yen for the program, with plans to deploy ship-launched assets on JMSDF vessels, including its growing fleet of offshore patrol ships.

The budget also seeks to expand Japan’s airpower with the procurement of nine F-35As and three F-35Bs, part of Tokyo’s long-term plan to acquire 147 F-35s in total. Additionally, Japan has requested funds for two more KC-46A tankers, raising its fleet to eight aircraft. The proposal will now move to the Ministry of Finance, with final approval expected early next year.

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