The Russian government and parliament have resolved a disagreement that had threatened to delay parliamentary approval of next year's budget, which is aimed at restoring international confidence in the economy.

The prime minister, Yevgeny Primakov, said that after talks lasting late into Friday night it was decided that tax revenues should be shared equally between the federal government and the regions.

Mr Primakov described the initial approval of the budget in a first reading on Thursday in the lower house, the Duma, as a victory for compromise.

Government and parliament, he said, had to work together to steer Russia out of the crisis.

The budget has to pass three more readings in the Duma before it goes to the upper house, the Federation Council, which represents the regions.