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Deputy Prime Minister Alexei Kudrin told the President that a draft project for the 2004 budget would be submitted to the State Duma on August 26.

Mr Putin expressed his hope that the work would enter the final stage before the autumn session of the Duma.

As proposed by the President, Deputy Prime Minister Viktor Khristenko delivered a report about the work of the High Level Group in Astana, which agreed the documents on establishing a common economic space of Russia, Kazakhstan, Belarus and Ukraine.

The Cabinet also discussed the beginning of an academic year, the subject traditionally discussed at this time of the year. Deputy Prime Minister Galina Karelova spoke about schools’ preparations for a new academic year.

Minister of Internal Affairs Boris Gryzlov reported on the situation in Chechnya on the eve of presidential elections in the republic.