An identical version of the $496 billion deficit-cutting measure was approved Thursday night by the House, 218 to 216.

On Wednesday, Mr. Berlusconi's Government announced its first deficit-cutting measures.

Democrats lambasted Mr. Fabiano and Mr. Gulotta, who was not present, for never having put their deficit-cutting measures into writing.

He also proposed deficit-cutting measures, including a two-year extension of a freeze in spending on some domestic programs.

His deficit-cutting measures are grounded in his plan to limit the growth in mandatory programs like Medicare, Medicaid, food stamps and veterans benefits, excluding Social Security.

The economic assumptions upon which these deficit-cutting measures are predicated are shaky at best.

Another major reason for the bullish sentiment for both stocks and bonds, Mr. Sohn said, is the deficit-cutting measures by the Republican leadership in Congress.

Because of a strong economy and deficit-cutting measures enacted in 1990 and 1993, the deficit last year was reduced to $164 billion.

Conservatives argue that Mr. Clinton's plan will hurt growth especially because tax increases represent the lion's share of the deficit-cutting measures.

It has also been noted that Laughren's budgets after 1991 were generally focused on deficit-cutting measures.