DATE=12/24/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-243484
TITLE=RUSSIA BUDGET (L UPDATE)
BYLINE=PETER HEINLEIN
DATELINE=MOSCOW
CONTENT=
VOICED AT: 

INTRO:  RUSSIA'S DUMA, OR LOWER HOUSE OF PARLIAMENT, HAS GIVEN 
INITIAL APPROVAL TO AN AUSTERITY BUDGET FOR NEXT YEAR.  V-O-A 
MOSCOW CORRESPONDENT PETER HEINLEIN REPORTS LAWMAKERS PUT ASIDE 
CALLS FOR A POSTPONEMENT OF THE VOTE AFTER PRIME MINISTER YEVGENY
PRIMAKOV THREATENED TO RESIGN.

TEXT:  THE DUMA GAVE IN AND VOTED AN OVERWHELMING "YES" AT THE 
END OF A DAY WHEN PRIME MINISTER PRIMAKOV ALTERNATELY THREATENED 
AND PLEADED WITH LAWMAKERS.  THE MARGIN WAS 303 TO 65.

BEFORE THE DEBATE BEGAN, THE PRIME MINISTER WENT TO THE KREMLIN 
TO TELL PRESIDENT BORIS YELTSIN HE WOULD STAKE THE FUTURE OF HIS 
GOVERNMENT ON WHAT HE CALLED "THIS SEVERE BUDGET".

        ///  PRIMAKOV ACT - IN RUSSIAN - FADE UNDER  ///

HE SAID, "IF THE BUDGET IS  NOT  ACCEPTED, WE WILL  NOT  STAY IN 
OUR JOBS."

LATER, IN AN EMOTIONAL SPEECH TO LAWMAKERS, HE EMPHASIZED THE 
NEED FOR A BUDGET TO BATTLE THE WORST ECONOMIC CRISIS SINCE THE 
COLLAPSE OF THE SOVIET UNION.  AND HE PROMISED THE COMMUNIST-LED 
DUMA HIS GOVERNMENT WOULD PLACE A GREATER EMPHASIS ON THE STATE'S
ROLE IN MANAGING ECONOMIC POLICY.

      ///  2ND PRIMAKOV ACT - IN RUSSIAN - FADE UNDER  ///

HE SAID, "IN THESE HARSH TIMES OF CRISIS, THE STATE MUST BE VERY 
ACTIVE IN CREATING A MARKET, USING ALL THE CONSTITUTIONAL MEANS 
AT ITS DISPOSAL."

THE MESSAGE APPEARED TO BE JUST WHAT COMMUNISTS AND HARDLINERS 
WANTED TO HEAR.  A DAY EARLIER, COMMUNIST LEADER GENNADY ZYUGANOV
HAD URGED A POSTPONEMENT OF THE VOTE.  HE TOLD REPORTERS THE 
BUDGET DID  NOT  GO FAR ENOUGH IN REVERSING WHAT HE CALLED 
"MONETARIST" POLICIES OF PREVIOUS GOVERNMENTS. 

BUT HE SAID HIS PARTY HAD RELUCTANTLY AGREED TO GIVE IN TO MR.!
PRIMAKOV'S PLEADINGS.

        ///  ZYUGANOV ACT - IN RUSSIAN - FADE UNDER  ///

HE SAID, "IT IS A BAD BUDGET, BUT HOW COULD IT BE ANYTHING ELSE".
THE COMMUNIST LEADER SAID HIS FACTION -- THE LARGEST IN THE DUMA 
-- HAD CONCLUDED THAT MR. PRIMAKOV AND HIS COMMUNIST CHIEF OF 
ECONOMIC POLICY, FIRST DEPUTY PRIME MINISTER YURI MASLYUKOV, WERE
ON THE RIGHT TRACK.

THE VOTE IS CONSIDERED A BIG VICTORY FOR MR. PRIMAKOV, BUT IT 
LEAVES SEVERAL DIFFICULT QUESTIONS UNANSWERED.  THE PRIME 
MINISTER HAD EARLIER STATED THE BUDGET WAS DESIGNED TO RESTORE 
CONFIDENCE AMONG FOREIGN CREDITORS. 

BUT WESTERN ANALYSTS SAY THE PLAN IS BASED ON SEVERAL UNREALISTIC
EXPECTATIONS, INCLUDING A STABLE EXCHANGE RATE, A 30 PERCENT 
INFLATION RATE, AND THE WILLINGNESS OF CREDITORS TO POSTPONE 
ABOUT NINE-BILLION DOLLARS IN LOAN PAYMENTS. 

                       ///  REST OPT  ///

THE BUDGET APPROVED THURSDAY CALLS FOR ABOUT 29-BILLION DOLLARS 
IN EXPENDITURES AT CURRENT EXCHANGE RATES, 24-BILLION DOLLARS IN 
REVENUES, AND A FIVE-BILLION DOLLAR DEFICIT.  BY COMPARISON, THE 
UNITED STATES BUDGET COLLECTS AND SPEND MORE THAN 30-BILLION 
DOLLARS A WEEK, ON AVERAGE.  (SIGNED)

NEB/PFH/JWH

24-Dec-98 12:15 PM EST (1715 UTC)
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Source: Voice of America
.