The BBC's Rob Parsons: "More regulatory role for the state"

The plan, which includes tighter state controls on the economy, was given the go-ahead at a special cabinet meeting called by Prime Minister Yevgeny Primakov.

The measures include a gradual cut in income tax, limiting monthly inflation for 1998 to 5% and annual inflation next year to 30%, and allowing the rouble to float.

Mr Primakov: Yeltsin's finger still on the button

After the meeting Mr Primakov said there was no question of limiting the powers of ailing President Boris Yeltsin, including those over nuclear weapons.

There has been widespread speculation that the prime minister will assume some of the the powers of the president who is resting at a Black Sea resort.

But Mr Primakov told a news conference: "The nuclear briefcase is in the hands of the president. You can go to the president for all your problems."

The case is said to contain codes to begin a nuclear attack. The only time Mr Yeltsin has given up control of the codes was during his 1996 heart surgery.

IMF freezes multi-million dollar bailout

Economics Minister Andrei Shapovalyants said the plans agreed by the cabinet were based on receiving promised international loans.

These are still being withheld by the International Monetary Fund which said yesterday that the draft measures it had been shown were not a basis for releasing fresh credits.

IMF: Refusing to release funds

The IMF last month froze $4.3bn dollars in loans to Russia pending a plan on how to deal with the economic crisis.

The loans were approved just before the devaluation of the rouble in August.

Fund officials left Moscow on Thursday after a week of talks.

In a letter to the government, the IMF criticised the draft plan for not containing measures for macro-economic stabilisation or cutting inflation.

Mr Shapovalyant told the Interfax news agency the anti-crisis program was being drawn up with eyes on the IMF rescue package.

He said that without the IMF credit line, Russia would be forced to seek other funds - risking a rise in inflation, a fall in the rouble and a halt to productivity.

Meanwhile the Russian Central Bank has announced that the rouble will continue to find its own level against other currencies.

The bank's chairman Viktor Gerashchenko said Russia did not have enough gold and currency reserves to support the exchange rate artificially.

'Patience running out with Primakov'

BBC Moscow Correspondent Robert Parsons says Mr Primakov is caught between two stools.

Parliament is demanding he reassert state control over wide sectors of the economy, spend more on welfare and pay back wage arrears, while the IMF is insisting on urgent fiscal reform, tight money and spending cuts.

And although Mr Primakov has brought Russia some much needed political stability, he has so far served up little more than platitudes on the economy.