Japan’s Ministry of Finance has proposed a five-year defense budget well below the level that some defense officials had expected.
Citing four people familiar with the discussions, Reuters reported on November 13, 2026, that the gap could force cuts of up to 50% to some planned aircraft and missile purchases, including Lockheed Martin F-35 fighters.
According to the report, Finance Ministry officials proposed spending between 50 trillion and 60 trillion yen ($313 billion to $375 billion) on defense over five years beginning from April 2027.
That would exceed the approximately 43 trillion yen ($269 billion) allocated under Japan’s current Defense Buildup Program for fiscal years 2023 to 2027. However, it would also fall well short of the roughly 80 trillion yen ($500 billion) that some defense officials and ruling Liberal Democratic Party (LDP) lawmakers had anticipated and used in negotiations with contractors.
Japanese defense contractors warned of potential order cuts
According to the sources, Japanese officials have warned defense contractors that expected orders could be cut sharply. Japan’s largest defense manufacturers include Mitsubishi Heavy Industries (MHI), Mitsubishi Electric and Kawasaki Heavy Industries.
One of the sources suggested that drone purchases could be spared. The Japan Ground Self-Defense Force has been evaluating systems in that category, including Helsing’s HX-2 strike drone. Rakuten previously said field trials of the HX-2 would continue through September 2026.
According to three of the sources, Finance Ministry officials believe that a larger defense spending increase would be difficult to fund alongside two other commitments made by Prime Minister Sanae Takaichi: investment in economic growth and a planned cut to the consumption tax on food.
Asked about the proposal, Finance Minister Satsuki Katayama told reporters that the government’s advisory panel on security and defense had not yet discussed spending at that level of detail and that it was therefore too early to comment. A Ministry of Defense spokesperson asserted that no decision had been made on the size of the next defense buildup plan and that Japan would first determine its defense needs before setting the budget.
Japan’s planned fleet of 147 F-35 fighters
Japan plans to acquire 147 F-35 fighters: 105 conventional takeoff and landing F-35As and 42 short takeoff and vertical landing F-35Bs. This would give Japan the largest F-35 fleet outside the US.
The current Defense Buildup Program, adopted on December 16, 2022, calls for the acquisition of 40 F-35As and 25 F-35Bs over its five-year period. The first Japanese F-35Bs arrived at Nyutabaru Air Base in August 2025.
Neither the number of F-35s potentially affected by the proposed spending limits, nor any revised acquisition schedule, has yet been disclosed. Japan has not announced a reduction in its overall 147-aircraft procurement plan.
Japan to revise its defense strategy by the end of 2026
The spending level will be determined as part of the Takaichi government’s revision of Japan’s three core security documents: the National Security Strategy, the National Defense Strategy and the Defense Buildup Program. The government aims to complete the revision by the end of 2026, bringing forward an update originally planned for 2027.
On August 31, 2026, the Ministry of Defense requested a record 8.89 trillion yen (approximately $55.6 billion) for fiscal 2027. The request was based on the existing Defense Buildup Program, with funding amounts for many items left unspecified pending the adoption of the revised documents.