Home Economy Deficit projections shrink by $40 million

Deficit projections shrink by $40 million

Comptroller Kevin Lembo projects a $91.3 million state deficit for the end of the 2013 fiscal year, a $40 million decrease from his last projection.

Lembo said a $30 million gain in inheritance tax revenue is attributed for most of the gain, while unanticipated increases in Medicaid caseloads are the source of most of the spending deficit.

Looking forward, Lembo said he sees the deficit continuing to improve by the end of the year as the economy picks up.

“Connecticut’s economy is showing signs of a moderate, but steady recovery,” he said in a report released April 1.

In the first two months of the year, the state added 700 jobs, while in all of 2012 the state added 8,600 jobs, according to the comptroller’s report. About 40 percent of all the jobs lost during the recession have been recovered.

New housing permits continue to post strong gains, new home sales increased 12.3 percent in February, year over year, and home prices were up 11.6 percent in February, year over year.

Retail sales are up 4.6 percent compared with last year and nationwide, young adult households are carrying less debt on average.

 

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