Russia's Communist-led Parliament backed away from a budget showdown with President Boris N. Yeltsin on Thursday, signaling its readiness to compromise in what one Yeltsin deputy praised as a "victory for common sense."
The State Duma, or lower house, rejected the government's austere 1998 draft budget but also voted to create a special commission to revise it.
Communist leader Gennady Zyuganov reiterated plans for a no-confidence vote in the government next week, telling a news conference that Yeltsin's economic policies were "doomed to failure."
But Zyuganov devised the plan to resolve the budget dispute. The Duma voted 326-13 in favor of his compromise, setting up a working commission of government officials and lawmakers to draft budget changes.
Yeltsin welcomed the vote, telling reporters in Strasbourg, France, that "everything will be in order with the budget," the Interfax news agency reported Thursday.