Core Viewpoint - Japan plans to accelerate its defense spending to reach 2% of GDP by the end of 2025, earlier than the previously set target of 2027, due to a severe security environment [1][3]. Group 1: Defense Spending Plans - The Japanese government, under Prime Minister Fumio Kishida, has decided to include the budget for the Japan Coast Guard and infrastructure construction in the defense budget, aiming to increase defense spending to 2% of GDP by 2027 [3]. - The defense-related budget for the fiscal year 2025 is currently projected to be 1.8% of Japan's GDP, with plans to ensure it reaches 2% in the supplementary budget [3]. - The "Defense Force Development Plan" outlines a requirement of approximately 43 trillion yen for defense spending over the five years from 2023 to 2027, with a single-year spending target of 8.9 trillion yen by 2027 [3]. Group 2: Funding Sources and Challenges - There is a projected funding gap of 1 trillion yen, even with reforms in fiscal spending and utilizing surplus funds from the budget [3]. - The government plans to address this gap by increasing corporate tax, tobacco tax, and income tax, although the start date for the income tax increase has not yet been determined [3].