Arkansas’ economy continues to outperform its forecasts, according to the December revenue report from the Department of Finance and Administration. Arkansas’ net available general revenue is 7.3% above forecast, but $17.2 million or -3.1% below last year’s amount.
Michael Pakko with the Arkansas Economic Development Institute says one area of the economy that continues to see success is in sales and use tax collections. “Sales and use tax collections continue to be stronger than we had anticipated largely due to some of the stimulus programs that help to keep purchasing power in people’s hands and allow them to continue to spend,” Pakko said. “So that’s been something of a surprise. Consumer spending has boosted sales and use tax collections.”
Pakko said that the increase in sales and use collection could possibly be due to how people are choosing to spend their money during the pandemic. While dining out is restricted, people might spend more on groceries and at-home spending instead.
Read the full story on the UA Little Rock Public Radio website here.