Japan Considers Raising Defense Budget to Record $49 Billion: Nikkei

(Bloomberg) -- Japan is looking to raise defense spending to a record 5.3 trillion yen ($49 billion) for the year starting April 1, partly to develop a next-generation fighter jet, the Nikkei reported, without saying where it obtained the information.

The amount compares with 5.26 trillion yen earmarked for defense for this fiscal year and includes more than 10 billion yen for developing a military jet to replace Japan’s F-2 fighter in the future, the report said. The plan will be part of the government’s overall annual budget to be finalized by the end of the month.

An increase in defense expenditure would mark the eighth consecutive year of expansion. Japan’s medium-term defense program announced a year ago outlined spending of 27.5 trillion yen for the 2019-2023 period, up nearly 3 trillion yen from the previous five years. The country has been under pressure to step up military imports from the U.S. amid President Donald Trump’s criticism over trade imbalances.

To contact the reporter on this story: Takashi Nakamichi in Tokyo at tnakamichi1@bloomberg.net

To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Keith Gosman, Soraya Permatasari

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