Budget Deficit

Soviet officials said today they will start liquidating unprofitable businesses and farms to bolster the nation's economy and overcome a budget deficit expected to reach $58 billion next year. It was the first time Moscow has ever announced a budget deficit. "A number of enterprises are on the brink of being eliminated," Finance Minister Boris Gostev told the 1,500 deputies of the Supreme Soviet legislature.

The federal budget deficit appears almost ready to take its place in the Museum of Great Non-Problems, right next to the melting of the Polar Ice Cap. Those who follow the market in impending catastrophes will surely recall how recently a tidal wave of liquefied Arctic ice threatened to drown New York City under 20 feet of water and turn Southern California into a vast marshland. The formal disenshrinement of the deficit as the nation's No.

Montebello faces possible insolvency in the coming months if it cannot close a gaping budget deficit and has consulted with bankruptcy attorneys to weigh available options, according to a memo obtained by The Times. The memo, written last week to the City Council by Montebello's departing city manager, also said the city could face the potential of "bond default or other difficulties" if it does not repay the $17 million it borrowed from its redevelopment agency by June 30. Additionally, the city is struggling with cash flow.

Federal Reserve Board Chairman Alan Greenspan called Tuesday for a stepped-up attack on the federal budget deficit, warning that the United States cannot count on foreign money indefinitely to finance its economy. In a speech to the National Assn. of Realtors, Greenspan also stressed the importance of price stability for the long-term health of the U.S. economy.

European Union leaders endorsed looser budget deficit rules that should spare Germany and France from punishment, and backtracked on a plan to liberalize the market for services. The leaders rubber-stamped a deal negotiated by their finance ministers Sunday under which countries would be given more time to bring excess deficits back under the EU limit and could claim exemption for all sorts of public spending.

Israel will give the Palestinian Authority $6.5 million to cover current expenses in the self-rule areas of the Gaza Strip and Jericho, Israel's Treasury said Wednesday. In 1993, Israel agreed to give the Palestinian Authority $25 million in aid over five years. The first $4 million was disbursed last year. The funds were intended to finance development projects in the autonomous areas.

The federal budget deficit rose 25.6% in August, pushing the red-ink total for the first 11 months of the 1986 fiscal year to a record $216.96 billion, the Treasury Department said Tuesday. With one month left in the budget year, officials said the deficit has surpassed the previous record of $211.93 billion set last year. The monthly deficit for August was $27.91 billion, compared to a $22.22-billion imbalance in July.

Although tax receipts are increasing as the economy improves, Long Beach's stubborn operating budget deficit remains, according to a financial report released Friday. In a final accounting for the 1997 budget year, the report said the city was able to pay its bills only by spending $24 million from reserves and one-time budget adjustments. It said the city had "a structural deficit," meaning incoming tax revenues were not enough to pay for ongoing city services.

Grow up, California Re "Californians want it both ways on budget," Nov. 18 I am shocked, stunned and astounded to learn that Californians want to have their cake and eat it as well. We have an enormous budget deficit that cannot be fixed by cuts alone, and we must not fix it by taxes alone. We need to cut programs and pay more taxes. We got ourselves into this mess, and now we have to fix it. So to use a current expression, man up, voters! Start acting like responsible adults who have to fix a major problem and quit acting like whining, overindulged children who want someone else to fix the problem.

Jail and prison doors swung open for the first of hundreds of felons ordered freed by Gov. Paul Patton because of a budget crunch. Patton's "conditional commutation" covered 567 prisoners, all described as nonviolent offenders who, on average, were within 80 days of completing their sentences. Of that group, 363 were scheduled for release on Wednesday, and the rest on Friday. Patton's order was part of a plan to avert a $6-million deficit in the corrections budget.