Stronger Than Expected Recovery Benefits MN’s Budget Outlook
St. Paul, MN (KROC-AM News) - Minnesota's revenues from taxes and other sources far exceeded expectations during the first quarter of the state's fiscal year.
The latest Revenue and Economic Update from the Minnesota Office of Management and Budget shows the state took in approximately $5.27 billion from July through September. That is almost $600 million, or 12.7-percent, more than what was predicted by the Interim Budget Projection that was issued in May to reflect the impact of the COVID-19 pandemic.
The new report shows individual income tax payments beat the forecast by about $165 million, while sales tax revenues were $271 million higher, and corporate tax collections exceeded expectations by about $126 million. State revenues from various fees and other sources came in $31 million over the projection.
Looking forward, the Office of Management and Budget says the economic outlook has improved since the May revenue forecast. The consultant used by Minnesota for the projections is now predicting the nation's 2020 gross domestic product will register an overall decline of 3.5-percent after experiencing the record-setting 31.4 percent plunge during the second quarter due to the pandemic. The May projections had predicted the GDP would end up down 5.4-percent for the year.
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