US federal government to pay down $35 bln debt in second quarter

Source:Xinhua Published: 2013-4-30 9:37:48

The US Treasury Department said Monday that the federal government expected to pay down $35 billion debt in the second quarter as a result of higher receipts and lower outlays, the first reduction in debt since 2007.

"During the April-June 2013 quarter, Treasury expects to pay down $35 billion in net marketable debt, assuming an end-of- June cash balance of $75 billion. This borrowing estimate is $138 billion lower than announced in February 2013," the Treasury said in a statement.

The Treasury forecast that $223 billion will be issued in net marketable debt during the July-September quarter this year, assuming an end-of-September cash balance of 80 billion dollars, noted the statement.

During the January-March quarter, the Treasury issued $349 billion in net marketable debt and ended the quarter with a cash balance of $79 billion, according to the statement.

US economic growth accelerated during the first quarter of 2013, as was shown by the figures released last week, Alexander Gelber, Acting Assistant Treasury Secretary for Economic Policy, said in a separate statement.

"The combination of proposed deficit reduction measures and stronger expected US economic growth is projected to put our national debt on a declining path as a share of the economy and lower the deficit to less than 2 percent of gross domestic product (GDP) by 2023," stressed Gelber.

In its 2014 fiscal year budget proposal unveiled early April, the Obama administration sought to turn off the sequester and reduce the deficit by an additional 1.8 trillion dollars over the next decade, bringing the total amount of deficit reduction to roughly 4.3 trillion dollars.

The budget deficit of the US federal government topped around $1.1 trillion in the 2012 fiscal year ending in September, about 207 billion less than the 2011 fiscal year. It was the fourth consecutive fiscal year that the US federal government's budget deficit surpassed 1 trillion dollars.

Posted in: Economy

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