MPs voted unanimously for Baisultanov, who has been Chechnya's acting premier since March 19.
"I realize that this is a great responsibility," Baisultanov told parliament. "Together with the government and parliamentarians I plan to continue the work started by Akhmad Kadyrov towards building a peaceful republic on equal terms with Russian Federation subjects."
Dukuvakha Abdurakhmanov, chairman of the People's Assembly at the Chechen government said Baisultanov deserved the position for his work in modernizing Grozny airport, the Khankala bridge, and a cement plant.
"The construction of 720 apartment blocks is underway in Grozny," Abdurakhmanov said. "Baisultanov carries out all presidential instructions without problems."
Simultaneously, Chechen President Ramzan Kadyrov decreed to reduce the number of deputy prime ministers from eight to three.
Ramzan Kadyrov was sworn in as Chechen president on April 5.
Kadyrov, who turned 30 in October, has been the de-facto leader of the troubled Caucasus republic since 2004, when his father, then-President Akhmad Kadyrov, was killed in a terrorist bombing.
Ramzan Kadyrov has since occupied the posts of first deputy prime minister, advisor to President Vladimir Putin's envoy to the region, premier, and acting president.
A former separatist, Kadyrov, who runs a private army accused by human rights groups of kidnapping and extortion, has vowed to end separatism. In early March, he said he would eliminate remaining armed groups within two months.
