Only 40.5 percent of government subsidies granted to Tohoku reconstruction projects by municipalities and other entities between fiscal 2011 and 2013 was used as planned, according to a review by the Board of Audit.

A total of ¥3.4 trillion was extended to 102 projects during the period for a wide range of projects, including housing, medical services, nursing care and welfare.

However, only ¥1.3 trillion was spent as of the end of fiscal 2013 as some projects were not carried out as initially planned or may have been over-funded in the first place, the review showed Monday.