With government debt having surpassed ¥1 quadrillion, the nation’s fiscal condition has become alarmingly stringent. Under the circumstances, the Cabinet Office and ministries are urged to exercise care in implementing budgetary appropriations.

The Board of Audit has compiled a report on the findings of its audit of government organizations for fiscal 2013. The audit uncovered 595 cases of wasteful expenditure, failure to collect taxes and related irregularities worth a total of ¥283.1 billion, according to the report.

In recent years, the board has been monitoring budget disbursements by the office and ministries to determine if institutions and programs funded by public money are run effectively. Also in this report, the implementation of social security-related budgets was scrutinized.

A case in point was the system under which the central government covers part of the bills for high-cost medical services for the elderly aged 75 or older. The board’s inspections disclosed that more than ¥1.3 billion in central government funds was overpaid under the system during the three-year period from fiscal 2010 to fiscal 2012.

This was because prefectural associations in charge of managing payments to medical institutions under the government-run health insurance plans overcharged the central government by duplicating bills for medical expenses listed in health insurance claims submitted by medical institutions. To resolve this problem, the Health, Labor and Welfare Ministry must adopt measures to prevent a recurrence of sloppy paperwork, and give appropriate guidance to the prefectural associations that handle payments of health insurance money.

Subsidies go unused

The board also assessed progress in the health ministry’s program for encouraging medical institutions with a high percentage of elderly patients, if the need for their hospitalization is deemed low, to convert themselves into nursing care facilities. The program is aimed at curbing rises in medical expenditures, but only 15 percent of the envisioned conversions took place.

The result is that ¥5.5 billion has been left unused out of ¥6.7 billion the central and local governments have set aside for subsidies to fund the conversions. The health ministry clearly lacked foresight in designing the program, and it should comprehensively review the program.

Social security costs are the largest expenditure of the government. To ensure the viability of the social security system, it is essential to do away with wasteful use of budgets.

The board’s report also uncovered problematic points regarding antidisaster projects.

It was found that 106 flood control dams in 23 prefectures, including Hokkaido, had heavier deposits of mud and sand from upstream than expected, making it impossible for the reservoirs to fill their normal capacities in the event of heavy rains. Another problematic issue is whether the Land, Infrastructure, Transport and Tourism Ministry and local governments concerned have adequately maintained and managed such dams.

There were 25 dams for which such tasks as measuring the volume of leaks from banks and repairing broken seismometers went undone for three years or more, the board’s report said.

Declines in the water control functions of dams can increase flood risks. It was reasonable for the board to make public the names of problematic dams, for the sake of raising an alarm over the situation.

Referring to projects for laying power lines underground to replace utility poles, the board noted that there were at least 54 locations where utility poles and their wiring were left unremoved five years or more after the lines were buried. It should not be overlooked that in 47 cases, the roads they were on have been designated as emergency transport roads to be used during disasters.

Utility poles brought down by an earthquake could impede rescue and fire-fighting operations.

It is extremely important to ensure the effectiveness of public investments related to people’s lives.