While a sales tax hike may be on the horizon, the government will remain unyielding in its quest to eliminate wasteful spending, new state minister in charge of government revitalization Renho says.

In a group interview with reporters Thursday, the Upper House lawmaker, who was appointed to the position last week, acknowledged Japan's finances are in "dangerous waters," due mostly in part to its massive public debt.

But Renho revealed that Prime Minister Naoto Kan asked her when she was appointed to focus on "jigyo shiwake" — the ongoing review of shadowy government-backed entities — to eliminate financial waste.