AUGUSTA, Maine (AP) — Maine’s $1 billion-plus budget gap may not be that big after all.

Revised revenue estimates that won forecasters’ blessing in Augusta on Tuesday point to a shortfall that could be roughly half that size. The Revenue Forecasting Committee endorsed figures that lower the shortfall through the next two-year budget cycle by more than $450 million, which could ease prospects of more deep budget cuts.

The improved figures are due mainly to improvements in individual income taxes and corporate profitability. Economist Amanda Rector says that by the end of 2013 employment should get back to pre-recession levels.

The upbeat news came as the state Labor Department reports that Maine’s preliminary unemployment rate was 7.4 percent in October, down from 7.7 percent in September and from 8.1 percent a year earlier.