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What Are Offsets? INTERVIEWER  The fiscal 2021 defense budget is expected to climb to 5.34 trillion yen, the highest on record. How much of that will be used to procure arms, materials, and equipment from abroad? NAKATANI GEN  The share claimed by imports has been rising year by year. This is particularly true of items covered by the Foreign Military Sales program, under which Washington provides defense articles and services to its allies. The fiscal 2021 budget request includes imports of 3.7 trillion yen under FMS, of which 3.1 trillion yen will be for items used in Japan and 500 billion yen for overseas. INTERVIEWER  The Japanese economy has been decimated over the past year due to the outbreak of COVID-19, but arms and equipment purchases from foreign sources are likely to rise in order to counter developments in China and North Korea. Is there anything the Japanese government can do to overcome this dilemma?

United statesFrance generalUnited kingdomSaudi arabiaNorth koreaSuga yoshihideNakatani genKishi nobuoTakayama hirokazuMinistry of economyMinistry of defenseWhat areForeign military salesPrime minister sugaDefense minister kishi nobuoRepresentatives security committee