RIGA, June 1 (Xinhua) -- Lithuanian Prime Minister Algirdas Brazauskas and his government formally resigned on Thursday.

    Finance Minister Zigmantas Balcytis was picked to lead the caretaker government until a new Cabinet is sworn in.

    According to reports reaching here from Vilnius, capital of Lithuania, President Valdas Adamkus has named Balcytis as acting prime minister.

    On Wednesday, Brazauskas said he would resign after the largest party in his coalition government, the Labor party, withdrew amid allegations of corruption in the cabinet.

    In normal circumstances, prime ministers should oversee the government until a successor takes office.

    The president has 15 days to propose a new candidate for the post to parliament. But Brazauskas, apparently stung by Adamkus' assertion that he could not trust the outgoing government, said on Thursday that his resignation would take effect immediately.

    Adamkus is expected to sign a decree later on Thursday keeping other current ministers in their posts until a new government can be formed.

    The president's prime ministerial nominee will have 15 days to propose a cabinet and government to parliament. A simple majority in the 141-seat assembly is needed to approve a new government.

    Brazauskas is the leader of the Social Democrats party, the No.2 party in the government. He has led two successive governments since 2001.

    Lithuania, a country of 3.5 million people, joined the EU and NATO in 2004 and has witnessed much political upheaval since breaking free from the Soviet Union in 1991. Enditem