Japan eyes 40-45 trln yen for 5-year defence spending plan

Japan is set to earmark between 40 trillion and 45 trillion yen ($295 billion-$333 billion) for defence spending over a five-year period starting in the next fiscal year from April, three sources with knowledge of the matter told Reuters on Friday.

That would mark a jump from the current five-year defence plan, comprising spending of 27.5 trillion yen.

Prime Minister Fumio Kishida told ministers on Monday to work on a plan to lift the size of defence spending to an amount equivalent to 2% of gross domestic product within five years, from about 1% now, as Japan faces an increasingly assertive China and threats from North Korea.