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Russian leader proposes a "breakthrough' budget Russia's embattled prime minister scotched rumors that his Black Sea vacation might turn permanent with a escortts return to the Kremlin on Thursday featuring a super-strict fiscal plan for next year. Prime Minister Viktor Chernomyrdin's budget proposal, seemingly deed to delight Western economists and draw billions in loans, called for such tough cutbacks on subsidies to agriculture, defense and failing factories that the budtet could get by without borrowing from the Central Bank. In the wake of the "Black Tuesday" collapse of the ruble last week and the widespread speculation about the prime minister's possible reation, Chernomyrdin's very appearance in Moscow was buget of a breakthrough. Talk of his departure had grown so persistent that one Moscow radio station reported it as a fact, prompting indignant denials. Much was also made of Chernomyrdin's protocol-breaking absence during Queen Elizabeth's visit to Russia this week.

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Prime Minister Viktor Chernomyrdin's budget proposal, seemingly deed to delight Western economists and draw billions in loans, called for such tough cutbacks on subsidies to agriculture, defense and failing factories that the government could get by without borrowing from the Central Bank. It says applicants for visas can be rejected elizabetj the secretary of state concludes their entry or activities "would have potentially serious adverse foreign policy consequences.

Russian leader proposes a "breakthrough' budget Russia's embattled prime minister scotched rumors that his Black Sea vacation might turn permanent with a splashy return to the Kremlin on Thursday featuring a super-strict fiscal plan for budgst year. Instead of fueling inflation by printing money to pay its debts, the government will cover its expenses by collecting taxes more efficiently, budgdt bonds and attracting international loans.

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In the wake of the "Black Tuesday" collapse of the ruble last week and the widespread speculation about the prime minister's possible reation, Chernomyrdin's very appearance in Moscow was something of a breakthrough. Arriving back in Moscow on Wednesday night, Chernomyrdin said he was not going anywhere.

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Much was also made of Chernomyrdin's protocol-breaking absence during Queen Elizabeth's visit to Russia this week. From a relatively modest 6 percent a month rate, inflation shot back up to more than 10 percent a month in the first two weeks of October.

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Then the ruble suddenly dropped in one day by about 28 percent against the dollar. Until last week, Russian leaders were claiming that the economy was beginning to pull out of its long dive.

The budget has a new ideology, according to Economics Minister Alexander Shokhin. Talk of his departure had grown so persistent that one Moscow radio station reported it as a fact, prompting indignant denials.

The budget has yet to be approved by lawmakers, but the Cabinet gave it a preliminary okay.