TOKYO, Feb 17: Japan’s finance minister abruptly resigned on Tuesday over allegations he made a drunken appearance at a G-7 news conference, shaking Prime Minister Taro Aso’s already deeply unpopular government.

The resignation was a huge embarrassment for Aso and a blow to Japan’s efforts to deal with an economy that shrank at its fastest rate in 35 years in the fourth quarter and shows no signs of reversing course anytime soon.

Finance Minister Shoichi Nakagawa, who has denied being drunk, offered his resignation on Tuesday night after earlier in the day saying he would stay on until after parliament approved the budget for the fiscal year, probably in late April.

“I have resigned,” said Mr Nakagawa, one of the most prominent members of Mr Aso’s cabinet. “I decided that it would be better for the country if I quit.”

“He made a difficult choice, and I respect his decision,” Mr Aso said.

Economy Minister Kaoru Yosano will assume Mr Nakagawa’s duties, the prime minister said.—AP