Putin becomes Russian PM, outlines programme

Russian lawmakers on Thursday voted 392-56 in favour of Vladir Putin becoming Prime Minister, a day after he stepped down as President. The Communists were the only parliamentary faction to vote against.

Earlier Putin pledged to curb Russia's growing inflation and vowed to cut taxes on the oil industry.

Putin said in a speech to parliament presenting his candidacy that his administration wanted "single-digit inflation within a few years" as part of a plan to make the country one of the world's economic leaders by 2020.

"First and foremost we need a robust macro-economic situation," Putin said. "In this connection, we will devote the closest attention to all aspects of financial policy -- first of all to measures directed at reducing inflation." Investors have said inflation is Russia's biggest economic problem, with price rises running at 14.3 percent in April on an annualised basis and growing fears of labour unrest.

Russia is in its 10th year of rapid growth and Putin said it would displace Britain this year as the world's sixth biggest economy based on purchasing power. The incoming prime minister, who handed over the presidency to his chosen successor Dmitry Medvedev on Wednesday, said big rises in spending on health, education and infrastructure were needed to secure Russia's place as a leading country.

Putin called for lower taxes on the oil industry, which has complained that excessive duties are crippling its ability to boost production, but give no details. He called for tax breaks for the securities market. "Lightening the tax burden will be a significant stimulus for the country's business climate," he said.

After the speech, the State Duma (lower house of parliament) voted to appoint Putin as prime minister.