Nikkei reports Japan, under pressure from the Trump administration to lift
allies' defense spending to 3.5% of GDP, is considering from next fiscal year
reclassifying more spending categories — including energy outlays and parts of
development aid — as defense expenditure. Japan's FY2026 defense budget is about
1.3% of projected GDP; including related items rises to roughly 1.5%. Reaching a
3.5% benchmark would require an additional roughly ¥15 trillion (about $96
billion) per year.
