Core Viewpoint - Japan's fiscal budget application for the fiscal year 2025 has reached a record high of 122.4 trillion yen, driven by rising prices, increased defense spending, and higher debt financing costs [1][2]. Group 1: Budget Overview - The budget application amount has increased significantly for the third consecutive year [1]. - The Ministry of Finance, Ministry of Health, Labour and Welfare, and Ministry of Defense are the three departments with the most notable budget increases [1]. - The Ministry of Health, Labour and Welfare has requested the largest budget of 34.8 trillion yen due to rising medical and pension costs associated with an aging population [1]. Group 2: Defense Spending - The Ministry of Defense's budget application is 8.84 trillion yen, surpassing the current fiscal year's 8.7 trillion yen, marking the largest defense budget request in Japan's history [2]. - Japan is increasing its military spending to 2% of GDP and is focusing on enhancing its "counterattack" capabilities [2]. - The defense budget will fund the development of the "SHIELD" defense system, which includes deploying drones and producing hard-to-detect hypersonic missiles [2]. Group 3: Economic Context - Japan's debt level is currently twice its economic output, ranking among the highest in developed economies [3]. - Concerns about the government's ability to manage fiscal spending are heightened due to the fragile political position of Prime Minister Kishida [3]. - The rise in government spending and global long-term bond yields has led to a record high in Japan's 30-year government bond yields [3].

Group 1 - The Japanese Ministry of Finance announced a record-high defense budget request of 8.8454 trillion yen for the fiscal year 2026 [1] - Japan plans to enhance its coastal defense system by significantly investing in drones, with a total procurement budget of 312.8 billion yen [1] - The government aims to increase total defense spending to approximately 43 trillion yen over five years from 2023 to 2027, with a target of reaching 2% of GDP by fiscal year 2027 [1] Group 2 - Concerns have been raised regarding the justification for the high defense budget, with calls for transparency from the Ministry of Defense being denied [2] - Criticism has emerged about the potential use of national debt to fund military expansion, recalling historical lessons from past military conflicts [2]

Core Viewpoint - The 80th anniversary of the atomic bombing of Hiroshima was marked by protests against Japan's military expansion policies and calls for adherence to the peace constitution [1][2] Group 1: Protests and Public Sentiment - A large gathering of citizens took place at the Hiroshima bombing site, expressing strong concerns over Japan's ongoing military expansion and the implications of the Japan-U.S. alliance [1] - Protesters held signs with messages such as "The Japan-U.S. alliance is a war alliance" and "Prevent nuclear war," indicating widespread public anxiety regarding military policies [1] Group 2: Government Response - Japanese Prime Minister Kishida Fumio reaffirmed Japan's commitment to the "Three Non-Nuclear Principles" during the memorial ceremony [1] - Hiroshima Mayor Matsui Kazumi emphasized the importance of remembering the nuclear bombing experience and inheriting the peace philosophy, although both officials did not address the historical context of the bombing [1]