Reconstruction minister Tsuyoshi Takagi on Tuesday dismissed any notion he will step down and denied separate allegations that he misused political funds and stole a young woman's underwear.

During the first Diet session since the Cabinet reshuffle in October, the newly appointed Takagi flatly denied reported allegations that he broke the Public Offices Election Law by offering funeral condolence money to constituents using political funds, stressing that he paid for the gifts with his own money.

"In each case, I visited (the family of the deceased) to pay my respects. There is no mistaking the fact that I paid (for the gifts) at my own expense," Takagi told the Lower House Budget Committee.