Editor's note: Gong Rong, a special commentator on current affairs for CGTN, is an observer on international affairs, focusing on the Asia-Pacific region. The article reflects the author's opinions and not necessarily the views of CGTN.

The Japanese government officially approved the draft budget for fiscal year 2026 on December 26, 2025, with the defense budget hitting a record high of 9.04 trillion yen (approximately $58 billion). This marks the 14th consecutive year of increase in Japan's defense budget. Compared with fiscal year 2022, the expenditure has surged by 67 percent within four five years. The pace of growth is truly staggering.

It is worth particular attention that the budget prioritizes such areas as upgrading drone combat systems including offensive models, strengthening long-range strike and missile defense capabilities, advancing strategic upgrades in space and emerging domains, and bolstering defense forces in southwestern Japan. This clearly shows that Japan is hurtling down the path of military expansion, with its intent to break free from the post-war peace framework laid bare for all to see.

After World War II (WWII), Japan enacted its pacifist constitution, which stipulates that "the Japanese people forever renounce war as a sovereign right of the nation and the threat or use of force as a means of settling international disputes." This is a basis for its readmission to the international community. Japan's "exclusively defense-oriented" policy and the three non-nuclear principles have long been regarded as hallmarks of Japan's commitment to peace.

In recent years, however, Japan has gradually veered off the path of peace and repeatedly reneged on its own commitments. Defense spending has been rising year after year, with the target of allocating 2 percent of GDP to defense achieved two years ahead of schedule in 2025, completely crossing the decades-long defense spending limit of 1 percent of GDP.

The top five Japanese defense contractors have recorded the fastest sales growth globally. Senior Japanese government officials have openly discussed revising the three non-nuclear principles. Both Japanese Prime Minister Sanae Takaichi and other senior officials have publicly claimed that the option of possessing nuclear submarines will not be ruled out, while officials from the Prime Minister's Office have even called for Japan's possession of nuclear weapons.

Takaichi has proposed accelerating the revision of the three national security documents, declaring that Japan will enhance its "sustainable combat capabilities." The ruling coalition has reached an agreement on drastically amending the three principles on transfer of defense equipment and technology, planning to ease restrictions on arms exports and paving the way for large-scale exports of weaponry, including lethal weapons in the future.

This stream of interconnected moves signifies that Japan is systematically deviating from the post-war pacifist constitution framework and breaching the exclusively defense-oriented policy. Its very nature as a "peace-loving nation" has undergone a fundamental change.

Meanwhile, it seems that Japan's already sluggish economy will continue to experience a further blow. According to a statistical report released by Japan's Cabinet Office on December 8, the country's third-quarter real GDP contracted by 0.6 percent quarter-on-quarter, equivalent to an annualized decline of 2.3 percent. This figure represents a further downward revision from the 1.8 percent announced in November, a margin exceeding expectations.

Japan's economy is trapped in a dilemma both at home and abroad. Externally, exports have continued to slump under the impact of U.S. tariff hikes, and internally, deep-seated structural problems remain unresolved, with stagnant growth, high inflation, weak domestic demand and massive debt intertwining to weigh on the economy.

Data from Japan's Ministry of Internal Affairs and Communications show that the country's core consumer price index (CPI) rose by 3.0 percent year-on-year to 112.5 points in November, marking the 51st consecutive month of increase and keeping household costs at persistently high levels. Aging demographics in Japanese society have driven up expenditures on healthcare, nursing care and pensions, with the social security budget for fiscal year 2026 also reaching a record high of 39.1 trillion yen.

Given the already lackluster economic performance, how will the Japanese government finance its exorbitant defense and social security budgets? There are two options: taxation and borrowing. The Takaichi administration has set its sights on taxation, planning to impose a new 1 percent "Special Defense Income Tax" on individuals and a 4 percent "Special Defense Corporate Tax" on businesses starting in January 2027. These additional costs will inevitably be passed on to consumers through price hikes on goods and services, adding to the burden of daily life.

What about borrowing? As is widely known, amid prolonged fiscal deficits and sluggish economic growth, Japan has been mired in a debt crisis. Japan's government debt has hit records for nine consecutive years. According to statistics from the International Monetary Fund (IMF), Japan's government debt-to-GDP ratio skyrocketed to 229.6 percent in 2025 – a figure that not only leads among major economies by a wide margin, but also far exceeds the 142 percent peak recorded during the Greek debt crisis from 2009 to 2010.

Despite such precarious fiscal conditions, Takaichi still plans to issue 29.6 trillion-yen worth of new government bonds in 2026. This move, which runs counter to economic fundamentals, has further eroded market confidence in the Japanese economy. Recently, the market has witnessed a wave of selloffs of the yen and Japanese government bonds, triggering a sharp rise in Japanese government bond yields and a surge in interest payments, putting Japan's fiscal stability at grave risk.

The hypocritical mask of the Takaichi administration cannot conceal its malicious agenda. By brazenly hyping up the "survival-threatening situation" and ramping up military buildup under the pretext of protecting public security, the administration turns a blind eye to the basic living needs of the Japanese people. Instead, it increases the tax burden on the public through measures such as the special defense taxes, and resorts to risky expansionary fiscal policies that threaten Japan's economic and financial stability, amplifying the sense of deprivation and insecurity among the people.

To sum up, the Japanese government is currently confronted with a sluggish economy and rising living costs for its citizens. Instead of increasing defense budgets, it should seriously consider how to address these pressing issues as the current path of prioritizing military expansion not only heightens the sense of insecurity among the Japanese people but also undermines regional peace and stability.

Such a dangerous trend of Japan's "neo-militarism" warrants heightened vigilance. All peace-loving countries and forces should voice clear opposition and work together to safeguard the hard-won peace forged after WWII.

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