The KATO cabinet embarked on a wide range of reforms that included; the elimination of four army divisions and thereby the cut in the military budget by 100 million yen, the House of Peers reform involving the reduction of the count, viscount and baron members, among titled members, to 150, the establishment of diplomatic relations with the Soviet Union based on the so-called Shidehara diplomacy by Kijuro SHIDEHARA, the enactment of the Universal Manhood Suffrage Law.
加藤内閣は陸軍4個師団の廃止や予算一億円の削減、有爵議員のうち、伯・子・男の数を150名に減らすなどの貴族院改革、幣原喜重郎の幣原外交によるソビエト連邦との国交樹立、普通選挙法の制定など、多くの改革が行なわれた。