Japan gov't panel recommends whole nation pay for higher military spending

A Japanese panel of experts advising Prime Minister Fumio Kishida on a planned defence hike has recommended the whole nation bear the financial burden and warned against relying on government bonds to pay for increases.

The recommendations in a document released on Tuesday came as Kishida's administration mulls how to pay for his pledge to "substantially" increase defence spending to counter what Tokyo sees as a growing security threat from neighbouring China.

If his government raises taxes to do so, he will have to decide whether increase rates on businesses or ask individual citizens to pay through higher income taxes or other means.