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Connecticut Budget Gap Shrinks as Tax Revenue Beats Projections

Dec. 22, 2020, 4:18 PM

Connecticut’s budget gap keeps shrinking.

The state cut its estimate for this year’s deficit to $640.2 million from $880 million last month as both sales- and corporate-tax revenue exceeded targets, according to Office of Policy and Management Secretary Melissa McCaw. The projected gap has narrowed by almost $1.4 billion since September, driven in part by strong payments from capital gains and partnerships.

The Covid vaccines and the latest federal stimulus measure “should bolster the economy and increase the likelihood that revenue will continue to outperform in the second half of the year,” McCaw wrote in a letter to state ...