AUSTIN, Texas – Texas’ strong economic rebound will result in a budget cushion of nearly $ 25 billion in 2023. This is according to state comptroller Glenn Hegar who predicts there will be more than $ 12 billion in the state savings account, also known as the “rainy day fund.” It also estimated that there would be a final balance of around $ 12 billion in unused general revenue at the end of the two-year budget cycle.
Hegar credits sales tax collections for performing better than expected over the past seven months.
“All revenues are up, but sales tax in particular. The past seven months have been the strongest months we have ever seen in the state of Texas, ”Hegar said in an interview with Capital Tonight.
But he was cautiously optimistic about his estimate, citing uncertainties over inflation, energy prices and global supply chain bottlenecks that could change the course of the fiscal outlook.
“All of this is going to have some type of drag on the Texas economy, especially for consumers in the ability to spend, as well as in some businesses, and that’s why I’m making these comments as to the caution of what we can see in the next 12 and 18 months potentially, ”he said.
Click the video link above to watch our full interview with Hegar.