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Indiana starts off new fiscal year with positive revenue performance

By Brandon Smith

Posted August 17, 2023

Indiana finished its last fiscal year more than $2 billion ahead of the state budget plan. (Lauren Chapman / IPB News)

Indiana’s tax collections started off the new fiscal year on the right foot, coming in just ahead of expectations.

Indiana closed its books on the last fiscal year more than $2 billion ahead of the state budget plan.

No one expects a similarly strong performance this fiscal year, as many suspect the economy will cool off — even if fears of a recession are dissipating.

Read more: 'Mobility' may partly explain Indiana’s still-strong labor market, experts say, but unknowns remain

Still, the new year did get off to a positive start, with revenues coming in nearly $2 million ahead of the state budget plan. That performance was largely led by individual income taxes, which bested expectations by $15 million last month.

That was balanced by sales taxes, where the state brought in about $27 million less than it hoped in July. That marks four consecutive months Indiana has failed to meet projections in its largest tax category.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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