Political funds raised by local political organizations nationwide totaled 176.1 billion yen in 1998, up 17.4 percent from a year before, the Home Affairs Ministry said Saturday.

The tax-free funds were raised by organizations operating in a single prefecture, such as prefectural branches of political parties.

It was the first increase in local fundraising in three years, said the ministry, which compiled figures reported to the prefectural election administration committees by such organizations.

Another 186.5 billion yen was raised during the year by organizations active in more than two prefectures, such as political party headquarters.

The year's political fundraising total for single- and multiple-prefecture groups was a record 362.6 billion yen.

Political analysts attributed the increase to efforts by political groups to secure funds in preparation for the House of Councilors election in July 1998 and nationwide local elections in April 1999.

Of the 176.1 billion yen, 87.9 billion yen consisted of donations, up 16.4 percent from the previous year. Of the 87.9 billion yen, donations by groups such as companies and labor unions accounted for 19 billion yen, while individual gifts accounted for 36.8 billion yen.

Corporate donations to local branches of political parties totaled 4.9 billion yen, up 22.7 percent from a year before.

Corporate donations to individual politicians were banned from January this year. But politicians can still receive corporate money through regional party branches they belong to.

The Liberal Democratic Party reported 35.5 billion yen in local political funds in 1998.

The Japanese Communist Party followed at 30.2 billion yen and the Democratic Party of Japan at 4.9 billion yen.