Japan’s ruling party says won’t rule out any options for funding defense boost

Japan’s government will not rule out any measures to fund increases in defence spending, the ruling Liberal Democratic Party’s policy chief Koichi Hagiuda said on Wednesday, when asked about possible additional debt issuance.
Hagiuda however told reporters after a meeting with his coalition partner Yosuke Takagi of the Komeito party that the government would not raise taxes in the next fiscal year when the five-year defence spending plan kicks off.
Hagiuda added that the ruling coalition and government officials will meet on Thursday to further discuss details. A final decision will be made by year-end on the source of the funding, including any tax hike plans
Prime Minister Fumio Kishida has announced plans to lift defence spending to an amount equivalent to 2% of gross domestic product within five years, from 1% now.