Japan approved record military budget of $44 billion

japan_military_budget

The Government of Japan approved a record defense budget on the background of the ongoing territorial disputes with China and threats from North Korea.

The amount of funds that the authorities are planning to spend on defense will be 5.13 trillion yen ($43.6 billion), with the total volume of the budget 97.5 trillion yen ($830 billion).

The new budget enters into force from the beginning of the next fiscal year, April 1, 2017. Before coming into force, it must receive parliamentary approval.

Territorial disputes with China over islands in the East China Sea led to an increase in the coast guard spending to 210 billion yen ($1.8 billion) from the current 187.7 billion yen.

In particular, the Japanese authorities are going to buy five large patrol ships and expanded staff of the Coast Guard by 200 people. Tokyo also wants to improve anti-missile defense system in response to the nuclear program of North Korea.

Experts point out that the sharp increase in military budget spending against the background of economic difficulties and rapid aging of the population could lead to an increase in Japan‘s external debt.

Source: BBC