TODAY'S pre Budget figures show that the Government is counting on raising £100 million from the sale of State assets this year. This may relate to the sale of ACC and ICC banks or of TSB bank, although there was no official comment on what has been counted in.

At the same time, the figures contain no provision for the proposed sale of 35 per cent of Telecom Eireann.

On the other side of the balance sheet, the Government has also pencilled in £100 million to cover capital given to semi state companies and also a prudent provision against the possibility that EU agriculture fines may be levied in 1996".

The Department of Finance would not reveal the breakdown of this total either, although the bulk appears to relate to payments due to Irish Steel and Bord na Mona, with perhaps £20 million to £30 million for EU fines still the subject of negotiation with Brussels.

The Department's pre Budget estimates are roughly in line with what private sector forecasters had expected.

The key figure is the Department's estimate of what the Exchequer needs to borrow before any Budget measures, which is £621 million.

In very rough terms, Mr Quinn may thus have £300 million on Budget day for measures to increase spending and cut taxes, which he will part finance through revenue raising, tax buoyancy and spare Depart mental balances of £150 million.

A key factor giving him extra scope is that tax reductions and spending increases in themselves create additional revenues for the Exchequer by boosting economic activity.

The final borrowing target is likely to be between £750 million and £800 million, or around 2.2 per cent of Gross National Product.

It would almost certainly have been higher except for the restrictions of the Maastricht Treaty, which counts borrowing in a different manner.

On a Maastricht basis the same borrowing target this year is likely to be around 2.7 per cent of Gross National Product, still safely under the 3 per cent Maastricht limit.