Fukushiro Nukaga, a lawmaker who has twice resigned from political posts, was named finance minister in a government that has pledged to reduce the world's largest public debt.
Nukaga, 63, replaces Koji Omi as Prime Minister Shinzo Abe seeks to cut spending and overhaul taxes to balance the budget by 2011. Hiroko Ota, 53, retained her position as economic and fiscal policy minister, a job Nukaga once held.
The Democratic Party of Japan's victory in the July Upper House election will make their jobs more challenging: The top opposition party opposes increasing the 5 percent consumption tax and wants to increase subsidies to farmers, small businesses and families.