Forty-five public corporations financed by the "zaito" government fiscal investment and loan program held roughly 306 trillion yen in total liabilities as of the end of fiscal 2000, according to a Board of Audit report submitted Friday to Prime Minister Junichiro Koizumi.

During the past 12 years through March 31, the government paid out a total of 31.2 trillion yen, including some 5.05 trillion yen in fiscal 2000, to help the quasi-governmental bodies reduce their debt loads, which the board said "match the outstanding balance of government bonds."

The report says the Cabinet, 10 government departments and 14 state-backed entities failed to make good use of 13.84 billion yen in taxpayers' money in 238 cases.

The board said there were 27 questionable subsidies, worth 201.2 billion yen, of the 62 provided to 35 public entities in fiscal 2000.

It was the first report covering several government departments to detail financial information on public corporations funded by the zaito program and public entities.

The zaito program, often called the second national budget because of its enormous size, channels funds via the Finance Ministry's Trust Fund Bureau to quasi-governmental entities for investment projects, loans and aid. It has mainly been financed by postal savings and public pension insurance funds and long criticized as inefficient.

According to the report, debt at the Japan Highway Public Corp., including long-term loans, rose by some 10.78 trillion yen during the 12-year period.

The firm "increased liabilities sharply following the completion of the Aqualine bridge-tunnel system across Tokyo Bay" that links Kawasaki and Kisarazu, Chiba Prefecture, the report says.

But its "business income levels are flat, asset values are falling and the government's fiscal support is increasing," it says.

The government has decided to dismantle or privatize seven major state-backed institutions as part of Koizumi's administrative reform drive.

Many other public firms are having trouble repaying debts due to the past decade of economic woes and falling interest rates, the report says.