MOSCOW, January 13 (Sputnik) — Japan's budget for the next fiscal year will stipulate an increase in defense spending due to a territorial dispute with China over a group of small islands in the East China Sea, Bloomberg reported Tuesday.
According to documents obtained by the agency, Japan's defense spending will account for some 5 percent of its new 4.98 trillion yen (just under $42 billion) budget, which will come into effect in April. The new budget is set to be approved by the country's cabinet Wednesday.
Japan boosted its defense budget for the first time in over a decade in 2013 after entering into a territorial dispute with China. The dispute began after the Japanese government decided to acquire three small uninhabited islands in the East China Sea, known as Senkaku in Japan and Diaoyu in China, from a private owner in September 2012.
