Japan govt approves 8th straight defence spending hike to record high

TOKYO - Japan's government on Friday approved an eighth straight annual increase in defence spending to a record high as it buys US-made stealth fighters, interceptor missiles and other equipment.

Japan's defence budget will rise 1.1% to a record 5.31 trillion yen ($48.56 billion) in the year starting April 1. Japan's parliament, which is dominated by Prime Minister Shinzo Abe's ruling Liberal Democratic Party, will vote on the spending plan next year.

Despite a constitution that forbids the possession of offensive weapons, Japan is one of the world's biggest military spenders. Outlays on defence have increased by almost 15% in less than a decade.

Much of Japan's recent defence spending splurge has gone on equipment supplied by US defence contractors such as Lockheed Martin Corp and Raytheon Co. Local makers such as Mitsubishi Heavy Industries have seen their share of defence spending shrink.

US President Donald Trump has thanked Abe for buying the US equipment, helping ease trade tensions between the allies.

Big-ticket purchases next year will include nine Lockheed Martin F-35 stealth fighters, including six short take-off and vertical landing (STOVL) B variants it wants to fly off aircraft carriers, for 107 billion yen. Japan plans to deploy them to extend the operational range of its Self Defense Forces.

Reuters