District government on pace for $140 million surplus Gandhi rejected claims this year that his revenue projections have been too low. (Sarah L. Voisin - The Washington Post) Officials estimate that, with three days remaining in its fiscal year, the District government is running a nearly $140 million operating surplus. Chief Financial Officer Natwar M. Gandhi disclosed the figure in Friday morning briefings with Mayor Vincent C. Gray (D) and D.C. Council Chairman Phil Mendelson (D-At Large). A senior Gray administration official confirmed the number. The surplus is thanks in large part to stronger-than-anticipated estate tax and income tax collections, according to the official. Despite the stronger-than-expected collections this fiscal year, Gandhi is not upgrading his revenue estimates for the next fiscal year, citing ongoing concerns about the potential effects of federal budget sequestration. Gray and Gandhi, you'll recall, clashed in the spring over what Gray called "unrealistically low" revenue estimates. The surplus represents about a 1.3 percent variance from the District's anticipated $10.8 billion in 2012 spending. Last fiscal year, audited figures showed that the city ran a $240 million surplus, leading Gray and council members to wonder why they had been forced to consider tax hikes and sometimes drastic spending cuts. The final audited number for the current fiscal year won't be available until late January or early February.