Taxes and other local revenues of the District of Columbia increased 19 percent in the 1978 fiscal year and topped $1 billion for the first time, the D.C. Department of Finance and Revenue has reported.

While the increase partly reflects a buoyant local economy, according to government and business, it does not foreshadow relief for local taxpayers. Officials said the higher revenues already have been swallowed by the city's ever-climbing estimates of future budgets.

The congressionally adopted $1.3 billion operating budget for the current 1979 fiscal year and the proposed $1.4 billion budget for the 1980 fiscal year, which begins next Oct. 1, have been balanced partly with the increased funds reflected by the new revenue report.

According to the new report, local revenues - not counting the annual federal payment toward the city's operating payment - totaled $1.003 billion, an increase of $159 million above the previous year.

Taxes paid into the city's general fund, from which the bulk of the city's activities are financed, totaled $310 million, an increase of $110 million above the previous year.

However, large chunks of the new revenue were windfalls that will not be repeated.

Changes in collection dates in taxes on business equipment and fixtures and on the gross receipts of banks and public utility corporations pushed collections upward $85 million. Catch-up payments on the federal government's water and sewer bills yielded another $14 million.

There were some revenue declines. Tax collections on cigarettes, liquor, gasonline and car registrations, went down by about $1 million in each category.

"I think the local economy will continue to be very strong," R. Robert Linowes, president of the Metropolitan Washington Board of Trade, said when told of the new revenue figures.

Despite a fear of national recession and rising interest rates, which could depress the tax-generating construction industry, "there still seems to be a very bullish market, and both sales and development continue to be phenomenal," Linowes said.

Robert L. King, financial economist with the Finance and Revenue Department, credited the city's commercial construction boom with a healthy share of a $16.8 million rise in sales tax revenues, which totaled $157.9 million in fiscal 1978. Building materials are subject to the same 5 percent tax as retail merchandise.

Real estate taxes totaled $167.5 million, an increase of $14.9 million, more than offsetting limited tax-relief measure for owners of single-family homes. An even larger tax-relief package has been eneacted by the City Council for the current fiscal year.

The personal income tax brought in $220.5 million, an increase of $19.6 million above the previous year and $6.5 million greater than the Finance and Revenue Department's forcasters had anticipated. When word of his reached the City Council recently, it added $6 million to the school budget for 1980.

Tax collections on the income of business corporations rose $10.4 million to a total of $50.6 million, and similar collections on unincorporated businesses rose $1.9 million to a total of $19.8 million.

Real estate taxes totaled $167.5 million, an increase of $14.9 million, more than offsetting limited tax-relief measure for owners of single-family homes. An even larger tax-relief package has been eneacted by the City Council of the current fiscal year.

The personal income tax brought in $220.5 million, an increase of $19.6 million above the previous year and $6.5 million greater than the Finance and Revenue Department's forcasters had anticipated. When word of this reached the City Council recently, it added $6 million to the school budget for 1980.

Tax collections on the income of business corporations rose -10.4 million to a total of $50.6 million, and similar collecions on unincorporated businesses rose $1.9 million to a total of $19.8 million.

The new hotel occupancy tax of 80 cents a night on each room, which was in effect only four months of the fiscal year, yielded $1.1 million. It is earmarked to help cover the cost of acquiring th site for the proposed downtown convention center. A surtax on business income provided another $800,000 for that purpose.

The sharpest decline in revenue during the fiscal year was in inheritance taxes. The 1980 total was $10 million, half of the previous years, when lion, half of the previous years when ment of the Marjorie Merriweather Post estate.