Japan’s government has approved a historic budget of 115.5 trillion yen for the upcoming fiscal year, which includes 8.7 trillion yen for military expenditures, amid escalating security threats from China and North Korea. The defense budget aims to increase spending to 2% of GDP by 2027, reflecting concerns over the most complex security environment since World War II. Additionally, Japan faces demographic challenges with nearly a third of its population aged 65 and older, necessitating increased social welfare funding.