State tax revenues continued to grow during the first three months of the fiscal year, the state Department of Taxation reported yesterday, suggesting that Hawai'i's economy is robust and renewing calls for tax relief by Gov. Linda Lingle.

The Lingle administration has also projected that the state's budget surplus would be $535 million at the end of the fiscal year next June, up from an earlier prediction of $473 million. The administration, based on September estimates from the state Council on Revenues, now expects a surplus of $632 million at the close of the 2007 fiscal year.

The state finished the last fiscal year with 16 percent revenue growth — and a $486 million surplus — a rate higher than anticipated. The council predicted more modest revenue growth of 6 percent this fiscal year and similar growth in 2007.

Lingle this week again called for using some of the surplus on tax cuts for lower-income workers. Some Democrats in the Legislature have been open to tax cuts, but will likely also evaluate spending more on education, housing and criminal justice.

General fund tax revenues are so far up 16.2 percent over last year, the Tax Department said. General excise and use taxes are up 11.6 percent. Hotel tax revenues are up 3.8 percent. Individual income tax collections are up 11 percent. And corporate income taxes surged because of a one-time payment.

The fiscal year runs from July to June.