AUSTIN, Texas — Texas' robust economic rebound will lead to a nearly $25 billion state budget cushion in 2023. That's according to Texas Comptroller Glenn Hegar who predicts there will be more than $12 billion in the state's savings account, also known as the "rainy day fund." He also estimated there will be an ending balance of about $12 billion of unused general revenue when the two-year budget cycle ends.

Hegar credits sales tax collections outperforming expectations in the last seven months.

“All revenues are up but sales tax in particular. The last seven months have been the strongest months that we have ever seen in the state of Texas,” Hegar said in an interview on 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 budget outlook.

“All of those are going to have some type of a drag on the Texas economy, particularly for consumers in spending capability, as well as particularly in certain businesses, and that’s why I make those comments as to the caution of what we may see in the next 12 and 18 months potentially,” he said.

Click the video link above to watch our full interview with Hegar.