The military budget of Japan is the portion of the overall budget of Japan that is allocated for the funding of the Japanese Self-Defence Forces. This military budget finances employee salaries and training costs, the maintenance of equipment and facilities, support of new or ongoing operations, and the development and procurement of new weapons, equipment, and vehicles. In December 2020, Suga's government approved a record 5.34 trillion yen ($51.7 billion/€42.4 billion) defence budget for the fiscal year 2021. This includes investment in the development of stealth fighter jets, new long-range missile systems and new compact warships, with the goal to counter potential threats from China and North Korea. With the move, the government continues to increase in defence spending year on year, as was the case under the Shinzo Abe government in the eight preceding years. History Cold War Even during the Cold War arms race of the 1980s, the Defence budget was accorded a relatively low priority in Japan. According to Japanese security policy, maintaining a military establishment is only one method—and by no means the best method—to achieve national security. Diplomacy, economic aid and development, and a close relationship with the United States under the terms of the 1960 security treaty are all considered more important. For FY 1986 through FY 1990, defence's share of the general budget was around 6.5%, compared with approximately 28% for the United States. In 1987 Japan ranked sixth in the world in total defence expenditures behind the Soviet Union, the United States, France, the Federal Republic of Germany (West Germany), and Britain. By 1989 it ranked third after the United States and the Soviet Union, mainly because of the increased value of the yen. In FY 1991, defence accounted for 6.2% of the budget. According to the Stockholm International Peace Research Institute, Japan was ranked fourth in world in 2004-2005, spending $42.1 billion; according to The World Factbook, CIA, Japan was fifth, spending $44.7 billion (the ranking is different because of the CIA's radically higher estimate of spending by the People's Republic of China). In addition to annual budgets, the Defense Agency prepared a series of cabinet-approved buildup plans beginning in 1957, which set goals for specific task capabilities and established procurement targets to achieve them. Under the first three plans (for 1958-60, 1962–66, and 1967–71), funding priorities were set to establish the ability to counter limited aggression. Economic difficulties following the