Japan Approves Record Budget to Tackle Aging Population and Defence Challenges
Aging Japan faces mounting challenges, prompting the government to approve a record $730 billion budget aimed at addressing its demographic crisis and regional security threats. Japan’s government has approved a record 115.5 trillion yen budget for the fiscal year starting April 2025. The allocation prioritizes addressing the needs of its aging society and bolstering defence in the face of regional tensions.
Boosting Social Security Amid Demographic Pressures
With 29.3% of its population aged 65 or older, Japan is one of the world’s oldest societies. To address this, the budget earmarks 38.3 trillion yen for social security, an increase from the previous year’s 37.7 trillion yen. This funding aims to provide sustainable care and support as the country grapples with chronically low birth rates and limited immigration.
Aging Japan: Strengthening Defence Capabilities
Defence spending has surged to 8.7 trillion yen, reflecting Japan’s shifting security policies amid regional threats. Measures include:
- Expanding satellite systems for ballistic missile tracking.
- Enhancing relations between US and Japanese forces, particularly in Okinawa.
- Attracting recruits to address troop shortages in the Self-Defense Forces.
Prime Minister Shigeru Ishiba emphasized the urgency of improving troop numbers, warning that advanced equipment is ineffective without personnel to operate it.
Challenges Ahead
The budget requires parliamentary approval, with Prime Minister Ishiba’s coalition needing cooperation from opposition parties after losing their majority in a snap election. Despite these hurdles, the budget represents a strategic shift in how Japan confronts its aging population and evolving security needs.
