Finance Minister Hirohisa Fujii on Wednesday became the first member of Prime Minister Yukio Hatoyama's Cabinet to resign. Mr. Hatoyama picked Deputy Prime Minister Naoto Kan as his successor.

The departure of Mr. Fujii, attributed to poor health from overwork, will be a great blow to the Hatoyama administration because his expertise was valued, as well as to Mr. Hatoyama personally because he was a close ally.

Mr. Fujii, the oldest member of the Cabinet at 77, played a central role in compiling the second fiscal 2009 supplementary budget and the fiscal 2010 budget. He was indispensable to an administration that has put priority on preventing a second dip in the economy. He was expected to be the key person for fielding tough budget-related questions from opposition forces during the regular Diet session due to start Jan. 18.