LITTLE ROCK — Arkansas revenues in the fiscal year that begins July 1 are expected to increase by $106.8 million above the current year’s revenues, the state’s fiscal office said Tuesday.

LITTLE ROCK — Arkansas revenues in the fiscal year that begins July 1 are expected to increase by $106.8 million above the current year’s revenues, the state’s fiscal office said Tuesday.


The state Department of Finance and Administration said in its annual revenue forecast that net available general revenues for fiscal 2017 are projected to reach $5.3 billion, a 2 percent increase above the $5.2 billion that revenues are expected to reach this year.


Revenues for the current year are expected to fully fund the state budget and leave a $35.9 million surplus, the agency said.


The state Legislature is scheduled to approve a budget for the coming year during a fiscal session that will begin April 13.


DF&A said agriculture and manufacturing continue to struggle in Arkansas, but the agency’s models indicate sustained growth in key economic drivers for revenue growth, amid evidence of consumer and business confidence in spending and new investment.


"The net result of this mixed condition and outlook is positive overall, as less volatile sectors continue to improve. Total wage income continues to advance amid historically low inflation and consumer energy cost," the agency’s director, Larry Walther, said in written commentary included in the forecast.


Walther acknowledged that there are significant risk factors for the forecast.


"They range from international risk of global economic stagnation with over reliance on financial stimulus efforts to the uncertainty of consumer spending and business investment rates," he said in the forecast. "Energy sector contraction in the region is holding back investment activity while the risk of a hard landing in China’s economy risks international trade."


In its monthly revenue report, also released Tuesday, the agency said net available general revenues for the first seven months of the fiscal year totaled $3.1 billion, which was $12.9 million, or 0.4 percent, above revenues at the same time last year and $97.8 million, or 3.2 percent, above forecast.


Net available general revenues for January totaled $551.9 million, which was up $30.6 million, or 5.9 percent, from January 2015 and $31 million, or 5.9 percent, above forecast.


Sales tax collections last month totaled $197.6 million, which was up $4.4 million, or 2.3 percent, from January 2015 and $600,000, or 0.3 percent, above forecast.


Individual income tax collections for January totaled $354.2 million, which was down $2 million, or 0.6 percent, from a year ago and $4.9 million, or 1.4 percent, above forecast.


Corporate income tax collections last month totaled $39.8 million, which was up $6.3 million from January 2015 and $7.3 million, or 22.4 percent, above forecast.