Kishida dismisses using government bonds to finance defense budget hike

Prime Minister Fumio Kishida on Saturday dismissed the idea of issuing government bonds to pay for an increase in defense spending in the coming years, adding he will seek public support for his plan to rely instead on tax increases.

The tax hike plan has already met opposition from lawmakers even in Kishida’s own party, although he wants the ruling coalition to work out the details before the end of the year, which coincides with a review of key security and defense documents.

Kishida has set a target of ¥43 trillion ($315 billion) in defense spending over the next five years until fiscal 2027, marking a sharp rise, as policymakers say they need to address increasing security challenges posed by China, North Korea and Russia.

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