AUGUSTA — The state expects tax revenue to increase in the next two fiscal years.

The Maine Revenue Forecasting Committee forecasted Thursday that the general fund will increase about $12.86 million in fiscal year 2014 and $7.77 million in fiscal year 2015.

“This is a sign that the economy is improving, but there is much more work to be done,” Gov. Paul LePage said in a statement. “Maine still faces many challenges, and we will continue to push for fiscal responsibility and long-term stability.” 

State Finance Commissioner, H. Sawin Millett Jr. also expressed caution. “I believe the revenue forecast due in March 2014 will provide a more telling picture of revenue projections over the balance of the biennium, as that report will contain the information on sales tax receipts from the holiday shopping season and the final estimated tax payments made by individual and corporate filers,” he said.

The committee consists of the State Budget Officer, the Associate Commissioner for Tax Policy, the State Economist and an economist on the faculty of the University of Maine System selected by the chancellor, the Director of the Office of Fiscal and Program Review and another member of the Legislature’s nonpartisan staff familiar with revenue estimating issues appointed by the Legislative Council.