Japan cabinet today approved it's biggest annual defence budget in the face of North Korea's nuclear and missile threats and a territorial row with China. The Cabinet approved 43.6 billion dollars in defence spending for the fiscal year starting in April, up 1.4 per cent from the initial budget for the current fiscal year.'<br/><br/>It marks the fifth straight annual increase and reflects the hawkish Prime Minister Shinzo Abe's attempt to build up Japan's military, which since World War II has been constitutionally limited to self defence.<br/><br/>Under the new budget, the ministry aims to beef up Japan's ballistic missile defences, allocating funds for a new interceptor missile under joint development with the United States. Japan has been boosting defence ties with the Philippines and other Southeast Asian nations, some of which have their own disputes with Beijing in the South China Sea. <br/><br/>The defence budget earmarks funds to dispatch extra personnel to the Philippines and Vietnam to increase gathering and sharing of information. The defence allocation is part of a record 97.5 trillion yen national budget that will be sent to parliament for debate and approval early next year.