35 Japan Govt Projects Found to Lack Efficiency

July 6, 2018

Tokyo- Japan's Finance Ministry said Friday that a total of 35 projects involving 12 government agencies, including itself, lack efficiency.

Of them, the ministry called for a fundamental review for a possible cancellation of the communications ministry's project to promote the Internet of Things.

The result will be reflected in work on compiling a state budget for fiscal 2019, which starts next April.

Some 500 million yen each was earmarked for fiscal 2017 and 2018 for the IoT project, which is designed to support the development of related services at municipalities and companies.

The allocated funds have been partly used for unrelated purposes, the Finance Ministry said. The ministry made only the IoT project subject to a review for a possible cancelation among the 35 projects.

For education ministry-related projects, the Finance Ministry pointed out that some universities have purchased laboratory equipment at unreasonably high prices under negotiated contracts and that neighboring universities have bought equipment separately that could have been shared among them.

The Finance Ministry said that cuts in subsidies and other penalties should be applied to universities that procure equipment in an inefficient manner.

In the spring, the Finance Ministry picked 45 projects that it believes can be streamlined. A review of the remaining 10 projects is under way. Jiji Press