THE Government should be able to meet its exchequer borrowing target set in the Budget, according to assessments by the main stockbroking firms.

Most believe that greater buoyancy in tax revenues than anticipated by the Department of Finance will lead to borrowing coming in below the £729 million target, although Davy stockbrokers judge that "an undershoot is not the highly probable outcome that was obvious on other Budget nights in recent years".

Davy warns that supply services spending may exceed Budget provisions, but that savings on the servicing of the national debt may still ensure that borrowing hits the target. Other brokers take a more relaxed view, with Riada seeing the borrowing target as "readily attainable", NCB seeing the targets as "robust" and Goodbodys predicting an outturn as low as £550 million, providing some state asset sales go ahead.

The Budget will give a mild boost to the level of economic activity, according to the analysts, with Davy predicting that it could add 0.5 per cent to disposable income. However, brokers differ on whether to agree with the Department's Gross National Product growth forecast of 5 per cent.

Davy's growth figure is also 5 per cent, but Riada sees growth of 6.5 per cent and Goodbody - which has previously forecast 1996 growth as high as 8 per cent - also believes the Department is too cautious.

NCB, in an assessment of the 1997 Budget outlook, believes that borrowing next year should be able to be held below the Maastricht ceiling.

This is vital, as budget performance next year will be one of the criteria used for participation in the EU single currency.