From now on, Japan's military, known as its Self-Defense Forces, will be permitted to fight overseas
The bills have sparked massive protests from ordinary citizens who say they violate the country's post-World War pacifist constitution.
Heads of state from Russia, Sudan and Venezuela will attend Thursday's parade.
Marking the 70th anniversary of the end of World War Two, Abe also said he upheld past official apologies but offered no new apology of his own.
Militants said on Sunday they had beheaded Kenji Goto after international efforts to secure his release failed.
Japanese prime minister Shinzo Abe said every effort was being made to secure the release of Kenji Goto.
Jordan said it would go ahead with a proposed prisoner swap only if one of its pilots captured by Islamic State insurgents was freed.
Islamic State released a video online purporting to show two Japanese captives, demanding $200 million from Japanese government.
The recession comes nearly two years after Shinzo Abe returned to power promising to revive the economy
Japan is poised for a historic shift in its defense policy by ending a ban that has kept the military from fighting abroad since World War Two