adio Message by Russian President, Boris Yeltsin.

"Dear Russians,
I have just signed the budget of Russia for 1997. This decision, I shall say frankly, did not come easily. There were great doubts on many key items. The executability of the budget causes very great doubts. At first the government did not completely develop it by including a number of unrealistic provisions. The Duma especially tried its 'hardest,' succumbing to populism and lobbying interests. After the deputies' amendments the budget became worse. However, a lot of critical remarks on the budget were already made at the Federation Council. And most of them cannot but be accepted. But the Federation Council approved the budget after all. And I, though reluctantly, signed it. Because rejecting the budget today means to sharpen the political situation in Russia to the limit. And a new wave of instability would hit worse precisely those of our citizens who are most unprotected. The start of an economic upturn would be postponed, and it would be harder to hold prices in check. But a bad budget is not a reason to lose heart. Viktor Stepanovich Chernomyrdin reported that within the voted budget there is a possibility to keep the promises on payments to the population.

I expect from the government a specific plan of action. And the principal conclusion for the future is that the President has to much more thoroughly control the process of the preparation of a budget for 1998. Otherwise we shall have what have got today.

I shall dwell on the situation in the Armed Forces. There are more than enough problems here. Including such acute problems as hazing and theft among commanders. The financing of the army has improved, but not enough so far. But it is equally important to use more thriftily the money which our society can realistically spend on defence needs today. And this is possible only with the start of a genuine, deep reform. It presupposes a reduction of servicemen, but does not come down to this. Military reform means to bring the armed forces, including their numerical strength, into conformity with the requirements of today and tomorrow. This is a response to the changed international situation, to the changes in the Russian state and to the new demands of life. The principal task of military reform is to qualitatively enhance the defence capability of the country. We know that there is a possibility to do this more wisely, on the basis of new principles for the formation of armed forces. Our long-term task is to shift to a professional army. Russia will have a professional army. To speak of the 21st century, I am confident that it alone will enable preserving the fighting efficiency of the armed forces and the potential of nuclear containment. The funds for military reform are provided for in the 1997 budget. I understand that they are not sufficient. But there are reserves of funds within the power agencies. They have to be found and utilised. I know that we have to begin military reform in very difficult conditions. But we have to start it. This is the only way to a revival of the armed forces of the country, of their fighting efficiency and their glory.

Thank you for your attention."