Massachusetts finished fiscal 2017 with a revenue gap of $431 million, in the range of what Gov. Charlie Baker said would be “reasonably manageable” to balance the books on last year’s budget.

Tax revenue collections fell $431 million less than anticipated. This figure is 1.7% below the yearly benchmark for the budget, according to the state Department of Revenue.

The state, however, collected $25.63 billion in fiscal 2017 a 1.4% increase from the previous year.

Gov. Charlie Baker said the gap would be would be “reasonably manageable” to balance the books on last year’s budget.

House and Senate budget writers project that 3% growth is necessary in 2018 to hit the $26.42 billion in tax collections for 2018 to support planned spending. The current growth rate is smaller.

The commonwealth reported a strong June, collecting $2.72 billion, or $9 million above the monthly benchmark and 3.1% more than what was collected in June 2016.

For the year, Massachusetts collected $14.67 billion in income taxes while the state was able to take in $6.21 billion in sales and use tax collections. The income tax collections are $291 million below the benchmark while sales and use tax collections were $19 million above the benchmark.

Withholding collections totaled $11.97 billion which was 0.2% above the benchmark.

Income tax payments came in it at $1.93 billion -- $235 million or 10.9% under the benchmark.

Last week, Republican Baker vetoed $320 million from the proposed $40 billion budget the legislature sent him. His vetoes bring the final number on the proposed budget to $39.4 billion.

Lawmakers can override Baker’s vetoes with two-thirds majorities in both chambers.

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