Japan Eyes $11.6 Billion In Military Construction Bonds

Japan wants to develop Self-Defense Force facilities using construction bonds as part of its efforts to boost defense spending.

Kyodo news agency reported on Tuesday that the government will earmark about 1.6 trillion yen ($11.61 billion) for construction spending by the fiscal year that ends in March 2028.

The country’s Finance Minister Shunichi Suzuki said that no decision has been made on the issue at the moment.

Japan is saddled with public debt that is more than twice the size of its economy. Boosting defense capabilities has emerged as an urgent matter amid uncertainty over China, North Korea and Russia.

Given the government's public finances, some ruling party lawmakers have called for issuing construction bonds to pay for portions of the larger defense budget.