TODAY'S Budget will be seen as one of the best in modem times, the Taoiseach, Mr Bruton, confidently predicted last night.

Speaking at the launch of the Ballyfermot Partnership's Action Plan yesterday evening, Mr Bruton declared the Budget would be about sound Government, prudent spending, reducing tax burdens and fair shares for the entire population.

The Minister for Finance, Mr Quinn, is likely to continue this theme. He will not want to be seen as solely a "giveaway minister" and will focus on keeping Ireland as a front-runner for the single currency.

One of his themes will be keeping interest rates and inflation low and borrowing at a subdued level. An important object will be the setting of the target for the General Government Deficit. While this can rise to as high as 3 per cent under the single currency rules, Mr Quinn is likely to want to keep it within the 1.5 per cent to 1.6 per cent range.

Another target which will be closely watched is the Exchequer Borrowing Requirement. Analysts forecasts for this range from £575 million to £700 million.

The temptation for the Minister will be to go for a higher target with the intention of coming in ahead of expectation - or allowing extra room for manoeuvre. But a lower target would do more to satisfy the financial markets, helping to keep interest rates low.

Of course, Mr Quinn will set out how quickly his Department sees the economy growing next year. The figure underlying the White Paper Estimates last week -pointed a forecast of 5 per cent real growth in the economy - that is after inflation.

With that level of continuing growth, he will have to keep a careful eye on inflation. The single currency rules state that it must be under about 2.5 per cent, given the low levels of inflation across much of Europe. With a Budget that will undoubtedly add to disposable income, it will be a very delicate juggling exercise for the Minister to convince the markets that low inflation remains achievable.

Nevertheless, Mr Bruton admitted that some people will condemn the Budget for not going far enough.

"Some people will say tax cuts could have been greater, that social welfare payments could have been higher. But all fair-minded people will recognise it is an attempt to build on the major achievements of this economy over recent years.

According to Mr Bruton, the primary strategy of the Budget and the Government is to ensure that jobs continue to be created, and that they make a greater impact on unemployment.

"Our strategy is to tackle the problems which prevent jobs being created and which discourage people from taking up job opportunities," he insisted.

Ms Mary O'Rourke, the Fianna Fail spokesperson on Enterprise and Employment, called on the Minister for Finance, Mr Quinn, to set targets in the Budget for reducing long-term unemployment.

"Last year's Budget was the first time that a Minister for Finance never set a target for reducing unemployment. Last year, he skated over the unemployment problem and relused to set a target for reduction.

Ms O'Rourke also called for the Local Employment Service to be implemented on a nationwide basis.