LEGISLATIVE councillors yesterday described the Budget as one of the best they had ever seen, although some expressed concern at the heavy dependence on direct taxes. They also expressed concern that the expenditure outlined by Mr Macleod would fuel inflation, although they welcomed the spending to improve people's livelihood. Despite the fact that Mr Macleod had budgeted for a deficit of $3.4 billion for the 1993-94 year, members said they expected a surplus. Mr Vincent Cheng Hoi-chuen agreed that the package was a departure from the previous policy of increasing the tax base. ''There is no mention about the tax policy in the Budget this year, as contrary to last year's Budget which included plans to maintain the tax base,'' he said. Mr Samuel Wong Ping-wai warned of the instability of the Government's tax source, which was based largely on profits tax. ''My reservation is, in any one year, if we have a very bad year or the MFN did not work out the way we wanted, there is always a danger that we will have to cut back on the non-recurrent budget,'' he said. Mr Eric Li Ka-cheung said: ''I think our tax base is narrower this year than what it was before. That would add volatility to the tax system, but with the healthy level of reserve and a bright prospect with southern China, I don't think it is a very big problem now.'' Mr Cheng said a double-digit inflation rate would have a bigger psychological impact on people. He called on China not to over-react, but to study the Budget carefully and accept it. The United Democrats said they were not worried about the deficits because the money spent would benefit Hongkong in the long run. Meeting Point legislators also said Mr Macleod was clever to spend the money mainly on capital works projects and non-recurrent designated funds. ''This will mean a once-and-for-all sum, and no commitment will be incurred for the next few years,'' said Mr Fred Li Wah-ming.