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Japan's Next Defense Budget to Post Biggest Rise in 18 Years
Source: http://www.japantoday.com
Source Date: Saturday, December 21, 2013
Focus: Public Administration Schools, Thematic Website, Institution and HR Management
Country: Japan
Created: Dec 24, 2013

Japan’s defense budget will grow 2.2% in the next fiscal year from April, Defense Minister Itsunori Onodera says, posting the biggest rise in nearly two decades.

The budget increase comes as tension between Japan and China simmers over tiny islands they both claim.

Japan’s defense spending next year comes in at 4.78 trillion yen, up 2.2% on the year, Onodera told reporters after meeting Finance Minister Taro Aso on Friday. That would be the biggest percentage rise in 18 years and mark the second consecutive year of growth.

The Defense Ministry has said, however, much of the budget growth next year will be linked to higher cost of equipment imports due to a weaker yen, and the end in March of temporary pay cuts for government workers aimed to help finance reconstruction after a 2011 earthquake and tsunami.

Saddled with hefty public debt, Japan had cut its defense spending for 10 straight years through to 2012, before Prime Minister Shinzo Abe, who returned to power a year ago pledging to bolster Japan’s defense posture, raised defense expenditure by 0.8% this year.

“This is quite satisfactory for the Defense Ministry. We will carry on defending Japan’s safety securely,” Onodera said.

In the latest flare-up in tension between Japan and China, Beijing last month declared a new air defense identification zone in an area that includes disputed East China Sea islets, triggering protests from Tokyo as well as Washington and Seoul.

The budget decision comes on the heels of new defense guidelines and military build-up plans, unveiled this week, which call for a 2.6% rise in defense spending for five years starting next April.

Asked if the 2014/15 budget was enough to implement the five-year build-up plan, Onodera said: “I believe we have received enough. But there is a precondition of tight fiscal situation. We need to work hard to cut costs and streamline whenever possible when it comes to equipment and training.”

The government is in the final stages of compiling next year’s draft budget, which will be approved by Abe’s cabinet on Dec 24.

The Defense Ministry’s initial budget request, submitted to the Ministry of Finance in August, has been trimmed by 0.7%.

Items in the budget request include 69.3 billion yen for four of Lockheed Martin’s F-35 fighter jets, 73.3 billion yen to build a destroyer with improved capability to detect submarines and 77.3 billion yen to buy four P-1 patrol planes made by Kawasaki Heavy Industries.

Japan also plans to allocate 300 million yen for research on surveillance drones and tilt-rotor aircraft, with an eye to procuring them in the year starting April 2015, the budget request showed.

Japan hopes that tilt-rotor aircraft such as the Osprey and unmanned aircraft including Northrop Grumman Corp’s Global Hawk will help it better defend remote islands, including the contested East China Sea isles, called the Senkaku in Japan and Diaoyu in China.

The Osprey, built by Boeing Co and Textron Inc’s Bell Helicopter unit, can fly as quickly as a plane but lands like a helicopter. In the five-year build-up plan, Japan aims to buy 28 F-35s, 17 tilt-rotor aircraft and three drones.

When costs associated with the realignment of U.S. forces in Japan are included, defense-related spending next year will reach 4.88 trillion yen, up 2.8% from this year, sources with direct knowledge of the matter told Reuters.

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