A memo issued this week by the State Budget Agency directs department leaders to take action for reducing expenses, along with no vehicle or furniture purchases.

Tax revenues came in about $63 million less in March than the state budgeted for. But Office of Management and Budget director Cris Johnston says that doesnt yet reflect a significant impact from the ongoing pandemic.

Sales, individual and corporate income taxes all bested projections, combining to set revenues more than $50 million ahead of expected levels.

State Budget Agency analysts say greater-than-expected sales tax revenues include payments from online sales tax, which many retailers are now paying for the first time.

Indiana tax collections have outpaced state budget targets in seven of the last 14 months.

The state didnt take in as much money in taxes in July as budget writers planned, but it was close.

Sales taxes, the states largest revenue source, did not meet projections, though theyre still on target for the overall fiscal year.

The first half of the fiscal year ended on a high, with strong December revenues. But they fell back to earth last month.

Sales and corporate income taxes did better than expected last month. And both tax collection categories are outperforming projections.

Growth in corporate tax collections - the third largest source of state revenue - is expected to stall in the second year of Indiana's next budget.