Japan’s government left approximately 130 billion yen unused from the 6.8 trillion yen defense budget for fiscal 2023, raising concerns about the substantial defense buildup. This unutilized amount is the second largest backlog since 2007, with the largest being after the 2011 earthquake and tsunami disaster.
The approved record-high defense budget aims to boost defense outlays over five years to combat security threats from China, Russia, and North Korea. However, delays in budget execution procedures due to increased contracts and projects caused the leftover funds.
The failure to fully utilize the budget may lead to criticism as the government plans tax hikes to fund defense spending. The unspent money is expected to be included in the general account settlement for fiscal 2023, with considerations to carry it over to the current fiscal year’s budget.
Despite consecutive years of unused funds in the defense budget, Japan aims to gradually increase defense outlays to reach 2 percent of GDP by fiscal 2027. This shift comes after maintaining defense spending at around 1 percent due to its pacifist Constitution.
© KYODO