asked the Minister for Finance the estimated amount of revenue receipts in the current financial year in respect of increased prices of commodities subject to VAT.

While the Deputy's question uses the term, "commodities subject to VAT" I assume that he has in mind all goods and services liable to VAT, since many services, such as car repairs and hotel meals, involve the supply of goods. The estimate of VAT receipts in the current year is £334 million. Of this amount, about £40 million relates to increases in prices of goods and services compared with last year.

Would I be right in assuming that in his budget estimates the Minister for Finance calculated that this increase would be forthcoming in respect of revenue due to price increases which were anticipated?

The estimate for the current year shows an increase of £80.5 million or 31.7 per cent over the 1976 yield. It is estimated that about £40 million of that is related to price rises, and it is based on the assumption of an average price increase of 15 per cent.

Therefore while the Minister talks about the economy stabilising, he is really budgeting for a 15 per cent increase all round in prices?

There are other factors also: there is the increase in the volume of consumption, the transfer of increased expenditure from lower to higher taxed items and increased efficiency of collection.