Japan: Estimated budget expenditure is about 1 trillion USD for fiscal year 2022


Japan: Estimated budget expenditure is about 1 trillion USD for fiscal year 2022

Budget projections proposed by Japanese ministries and agencies for the fiscal year 2022 hit a record of more than 111 trillion yen, or about $1 trillion.

International container terminal in Tokyo, Japan on March 18, 2020. Photo: AFP/VNA

According to Kyodo news agency on August 31, the total amount of budget expenditures proposed by Japanese ministries and agencies for the fiscal year 2022 reached a record – to more than 111 trillion yen (about 1 trillion USD) – due to costs. debt repayment is expected to increase in the context of the still raging COVID-19 pandemic.

The increase in this fiscal figure (starting from April 2022) is also due to the record high spending on Japan’s social security policy due to an aging population and rising defense spending.

In the budget proposal announced on August 31, Japan’s Defense Ministry wants to increase military spending by 2.6% to a record 5.480 billion yen ($49.93 billion) for the fiscal year. It is expected that in the additional military spending proposed by the Ministry of Defense of Japan, 130 billion yen is set aside to buy 12 F-35 stealth fighters from Lockheed Martin (USA). The ministry also plans to invest 105 billion yen next year to develop the country’s first fighter jet in three decades. The project, led by Mitsubishi Heavy Industries, is expected to be completed at a cost of about $40 billion.

In addition, Japanese forces also want to procure new warships, purchase and develop longer-range missiles. The Japanese Ministry of Defense also wants to invest in space-related forces, such as satellites and lasers, to enhance their ability to track targets. The ministry also wants to invest 34.5 billion yen to strengthen its defenses against cyber attacks.

After assessing the requirements, the Japanese Ministry of Finance will draft a budget in December for submission to the National Assembly for consideration.