Treasury to Pay Down Debt Contrary to Feb Estimates of Increased Debt
In February, Treasury had estimated the government would have to borrow $103 billion during the second quarter, and would end up with a cash balance of only $30 billion.
But thanks to unexpectedly higher receipts of government revenue and lower outlays in spending, the Treasury is experiencing a swing in fortune that allows officials to actually pay down some of its outstanding debt.
Treasury now expects to have a cash balance of $75 billion in June after paying down the $35 billion in debt.
Treasury also updated its borrowing projections for the third quarter of the year. The Treasury now anticipates it will borrow $223 billion from July to September, and will end that quarter with a cash balance of $80 billion.
More: Treasury to Pay Down Debt for First Time Since Obama Took Office - the Hill’s on the Money
Socialist! Spending us into oblivion!