Japan finance minister Katayama said Tokyo will factor fiscal sustainability into plans to raise funds for expanded defense spending, responding to local media reports that the government is weighing a corporate tax increase to help finance the buildup. Katayama said ministries are holding pragmatic, detailed discussions on required defense capabilities and attendant spending levels, and that any funding measures will be chosen with fiscal sustainability in mind and to ensure stable funding sour

2026-10-20

Japan finance minister Katayama said Tokyo will factor fiscal sustainability into plans to raise funds for expanded defense spending, responding to local media reports that the government is weighing a corporate tax increase to help finance the buildup. Katayama said ministries are holding pragmatic, detailed discussions on required defense capabilities and attendant spending levels, and that any funding measures will be chosen with fiscal sustainability in mind and to ensure stable funding sources.