Japan PM Sanae Takaichi Says She’ll Get Japan’s Security Spending up to 2％ of GDP in FY25

The Yomiuri Shimbun

17:43 JST, October 24, 2025

The government will increase national security spending to 2% of gross domestic product within the current fiscal year, two years ahead of schedule, Prime Minister Sanae Takaichi said Friday in her first policy speech, delivered to plenary sessions of both the House of Representatives and the House of Councillors.

She also promoted “responsible expansionary fiscal policy” and emphasized tackling high prices as a “top priority.”

At the beginning of her speech, Takaichi said the government would commit to “stabilizing politics,” citing the newly formed coalition government between the Liberal Democratic Party and the Japan Innovation Party. This coalition, however, does not hold a majority in either house of the Diet, and she called on opposition parties to propose policies, saying, “We will engage in flexible and sincere discussions as long as they do not contradict the government’s basic policy.”

Regarding security spending, the government has been planning for the nation’s security-related expenditures to reach 2% of GDP in fiscal 2027. However, Takaichi said her administration will “move this target” to sometime within fiscal 2025 and “take appropriate measures,” including through a supplementary budget.

The initial fiscal 2025 budget allocated about ¥9.9 trillion for such spending. Raising this to 2% of GDP — or about ¥11 trillion — would require an additional ¥1 trillion or so through a supplementary budget. With the further increases in view, Takaichi also outlined plans to revise three security-related documents, including the Defense Buildup Program, within the next year.

Regarding rising prices, she called for cooperation from both ruling and opposition parties to create a fiscal 2025 supplementary budget that “protects people’s livelihoods.”

Takaichi said the government aims to pass a bill to abolish the provisional gasoline tax rate during the current Diet session, expand grants for local governments and provide support for electricity and gas bills in winter.

Legislation was passed this year to raise the “annual income barrier” — the income threshold for the imposition of income tax — to ¥1.6 million, and Takaichi said she was enthusiastic about raising it even further.

For medium-to-long-term economic and fiscal policy, Takaichi said the government would “strategically deploy fiscal stimulus to build a strong economy,” aiming to create a virtuous cycle where increased income leads to higher tax revenue.

She announced the establishment of a “Japan growth strategy council” and the pursuit of robust economic growth through investments in crisis management, such as economic and food security.

To reduce the burden on the working generations through social security reform, she proposed the establishment of a bipartisan “national conference” and will start designing a “tax credit with cash payments” system that would combine direct cash payments and income tax cuts.

Regarding policies relating to non-Japanese residents, a key issue in the recent LDP leadership election, Takaichi insisted that the government would “draw a clear line against xenophobia,” while “responding resolutely to illegal acts and rule violations.”

She committed to strengthening the government’s control tower functions for policy about non-Japanese residents and reviewing rules concerning land acquisition by foreigners and other matters.

Takaichi also addressed the upcoming visit of U.S. President Donald Trump from Monday, saying, “We will elevate Japan-U.S. relations to new heights.”

Regarding China, she said Japan would continue to promote a “strategic and mutually beneficial relationship,” while stating that “it is also true that security concerns exist.”