Japan's future payment obligations based on existing defense equipment procurement contracts doubled to ¥9.45 trillion over the four years through fiscal 2023, the Board of Audit of Japan said Wednesday.
An increase in such obligations may put constraints on spending to procure new equipment and build facilities, resulting in budget rigidity.
According to the board, equipment such as ships and tanks often require time to build, leading the government to conclude contracts spanning multiple fiscal years. In such cases, payments are often made after the years when the contracts are sealed.
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