The Cabinet on Friday approved a set of guidelines to reform public organizations financially aided by the government or conducting charity, academic or other work on behalf of the state.

In a separate report released the same day, the government identified "problem" organizations it sees engaged in work that should be entrusted to the private sector or paying high salaries to executives despite being nonprofit entities.

The report, submitted by Ryutaro Hashimoto, state minister in charge of administrative reform, is based on a sweeping review of some 7,000 public organizations under the supervision of the government.