Japan yet to decide on defence budget funding, finance minister says

Japan has yet ​to decide on ​any specific means of funding ‌a ​potential increase in defence spending, Finance Minister Satsuki Katayama said on Tuesday, when ‌asked about the possibility of a corporate tax hike as a source of revenue. "At this point, there is absolutely no ‌specific method that has been decided," Katayama told a ‌regular news conference, adding that the government is assessing the scope of defence capabilities required and the appropriate level of spending needed to achieve ⁠them.

Kyodo ​News reported ⁠on Saturday that an additional corporate tax increase has emerged within the ⁠government as a possible source of funding for a planned defence ​budget expansion. Citing multiple government sources, the report said ⁠annual defence spending under the new defence strategy for the next five years ⁠is ​likely to exceed 10 trillion yen ($63.08 billion), up from about 9 trillion yen for the current ⁠fiscal year.

Japan has been under pressure from the US to ⁠raise defence spending ⁠to 3.5% of GDP, which it has said should be a global standard for allies. ($1 = ‌158.5300 ‌yen)