Japan's Defense Ministry is seeking about 8.9 trillion yen (about 56.1 billion U.S. dollars) for the 2027 fiscal year, setting a new record high, local media reported on Wednesday.
Kyodo News reported that the ministry will begin developing a submarine-launched hypersonic missile and push forward research on equipping unmanned submarines with long-range missile launch capabilities, according to the full contents of the disclosed fiscal 2027 defense budget request.
The report said that the defense budget request for fiscal 2027 prioritizes three areas. The first is a new defense approach to counter new forms of warfare involving drones and artificial intelligence (AI). The second is sustained response capability for prolonged conflicts. The third is the foundation of defense capabilities, including the production base for defense equipment and improved conditions for Self-Defense Forces personnel.
According to the report, the ministry is also developing a vertical launch system that can be loaded onto submarines. It will start work on low-cost domestically produced long-range missiles while also purchasing missiles from overseas. With these projects included, the final budget could reach around 10 trillion yen when it is formally compiled at the end of this year.
In late 2022, the Japanese government adopted three key security documents, setting a total defense budget of about 43 trillion yen for the five fiscal years from 2023 to 2027. Since fiscal 2023, Japan's defense budget has repeatedly hit record highs, raising concerns across Japanese society.
Analysts believe the continued expansion of defense spending sends a dangerous signal that the government is accelerating military buildup and seeking a breakthrough in military capability.
Japan plans record defense budget for fiscal 2027
Russian President Vladimir Putin has identified launching a new investment cycle in industry, agriculture, services and housing as a key priority for the national economy during a meeting of the Council for Strategic Development and National Projects on Wednesday.
Putin noted that Russia's many export-oriented megaprojects in the chemical industry, metallurgy, mining and petrochemicals have already passed their peak investment phase, leading to a slowdown in capital investment growth.
"The overall economic dynamics are modest but positive. Gross domestic product (GDP) growth stands at about 1 percent. Moreover, in the first half of the year, the GDP grew by 0.6 percent, and in the second quarter, it reached 1.3 percent," he said.
While noting that Ukrainian attacks had not caused serious damage, Putin said logistics and storage infrastructure required restoration, including with the government's participation.
Russia's Deputy Prime Minister Alexander Novak noted despite the impact of international sanctions, Russia's real GDP has increased by more than 10 percent over the past three years.
During the period, Russia's economic growth structure has shifted. The share of net economic exports have fallen by nearly threefold, and the economy has in effect pivoted toward the domestic market. Investment accounted for 23.3 percent of the GDP in 2025, reaching its highest level in the past 15 years.
Novak told Putin at the meeting that Russia's sector-level economic structure has also undergone changes. Manufacturing has become the key growth driver, and its share climbed from 13 percent to almost 15 percent in 2025. For the first time, manufacturing output has consistently exceeded extractive-industry output by more than 1.5 times. The share of high-value-added industries grew from 15 percent to 18.4 percent.
Putin calls for new investment cycle to boost Russian economy
