An increase in tax collections and other budget related savings have helped reduce Connecticut’s projected budget deficit by nearly 40 percent.
That’s according to Governor Ned Lamont’s budget office in a report this week. The office projects a revised $1.3 billion deficit.
Officials credit better than expected estimated tax payments, more revenue from the sales tax and higher withholding taxes as some of the reasons for the improved outlook for the current budget year that ends on June 30.
Budget director Melissa McCaw cautions that Connecticut could face “significant” budget challenges in the months ahead as the state braces for an expected second wave of COVID-19.
