The Japanese government left unused about 130 billion yen ($807 million) from the over 6.8 trillion yen that was earmarked as the defense budget for fiscal 2023, sources familiar with the matter said Tuesday, a move that could raise questions over the current record-level of defense buildup.
The amount of the backlogged money for the year ending March 31 was the second largest since fiscal 2007, after the Defense Ministry was upgraded from an agency. The largest amount was around 180 billion yen logged in fiscal 2011, in the aftermath of the massive earthquake and tsunami disaster that devastated northeastern Japan.
The Japanese government approved a record-high 6.82 trillion yen defense budget for fiscal 2023, the initial year of a five-year plan to boost defense outlays by pouring 43 trillion yen in total amid increasing security challenges from China and Russia, as well as North Korea's nuclear and missile development.
But the sources said the ministry failed to complete some budget execution procedures in time on the back of larger-than-expected increases in related contracts and projects.
With the government planning to resort to tax hikes to fund the rise in defense spending, the failure to use up the budget could come under fire and hamper progress in discussions to revise the tax system toward the end of the year.
The government is expected to report the unexecuted money in its general account settlement figures for fiscal 2023 to be released possibly in late July, while considering carrying over the funds to the current fiscal year's budget, the sources said.
The amount of unused funds in the defense budget has remained above 110 billion yen for three consecutive years through fiscal 2020.
In fiscal 2022, the amount totaled 107.3 billion yen, due to less-than-expected aircraft repair fees and other reasons.
Japan has set a target of raising its annual defense outlays gradually to reach about 2 percent of gross domestic product in fiscal 2027, after long keeping it at around 1 percent, or about 5 trillion yen, under its war-renouncing Constitution.
© KYODO
16 Comments
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Asiaman7
Seems wasteful to continually increase the defense budget to some arbitrary goal — i.e., 2% of GDP — when the budget hasn’t been fully spent every year since 2020.
Meiyouwenti
Use that unused money to raise salaries of the SDF personnel at least on par with the private sector. Then there should be no recruitment problem.
sakurasuki
That's really show JGovt efficiency, collecting money from many people at the end. Showing no efficiency at all. Every year defense budget, hit record budget.
https://www.japantimes.co.jp/news/2023/12/22/japan/politics/record-defense-budget/
TaiwanIsNotChina
Absolutely appalling that anything would go unspent when anti-ship missiles are needed at maximum production capability.
Legrande
Unused funds then just sit idle somewhere?…seems to be a recurring pattern that a large amount is not used each year
Brian Trout
Yes, go drop 130 billion yen on the eastern side of North Korea. (That’s China, by the way!)
That’ll show ‘em our smarts.
Jennie
On top of many other unused surplus of tax money, while missing the threshold to regulate the crashing currency. I have no idea what the current administration is doing.
WoodyLee
Wow, someone must have submitted a VERY FAT budget to start with, send it to Ukraine or better yet to the starving kids in Palestine.
SDCA
Please, no
Chabbawanga
Maybe use it to increase SDF salaries...
Mohan
Funny to know they are clueless how to spend what they asked for?
So much of paper work wasted... to start with
Nomir
So.... use it to pay off government dept.
Samit Basu
This is the real news on Japan's defense budget. Japanese MOD is starving for funds because of collapsing yen's exchange rate and are cutting back massively on new defense procurements for honoring old commitments contracted at 100 yen/dollar but Japanese government now must pay 162 yen/dollar.
https://www.nytimes.com/2024/07/08/business/japan-yen-defense-spending.html
Mr Kipling
OMG. .quick buy some more US produced, over priced hardware that will never be used.
Sh1mon M4sada
...and yet, those who are not qualified rushes off to Russia, China and NK to buy even more useless hardware. Prime example, India and China spending billions on Russian weapons but uses sticks and stones to fight each other. LOL.
DanteKH
Rest assured, the tax hikes will still going to happen, except the money will go into the endless pockets of LDP and it's acolytes.
This just proove that the budget is more than enough to sustain all industry and departments, however never enough to satisfy the greed of the Politicians.