 Treasury Expects To Borrow Record Amount |
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scottish2  |
Posted: 05-Nov-2003, 06:33 AM
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Celtic Guardian
Group: Celtic Nation
Posts: 3,048
Joined: 26-Sep-2001
Zodiac: Birch
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Since the government has the right to make it's own money why is it having to always borrow money???
http://story.news.yahoo.com/news?tmpl=stor...asury_financing
| QUOTE | Treasury Expects to Borrow Record Amount
Mon Nov 3, 4:06 PM ET
By JEANNINE AVERSA, Associated Press Writer
WASHINGTON - The government expects to tap $117 billion from the credit markets this quarter, which would mark the largest amount ever borrowed in any quarter, the Treasury Department said Monday.
Still, the latest borrowing projection for the October-to-December quarter would be an improvement from a previous estimate of $126 billion made in July.
The new, lower projection of borrowing is due to higher than expected tax revenues and lower spending, Treasury said. Officials would not provide more detailed information.
For the July-to-September quarter, government borrowing came to $82 billion ? not as much as the $104 billion that was previously estimated in July.
The lower borrowing figures _both for the last quarter and the current quarter_ comes as the national economy, which had been lethargic at the beginning of the year, roared ahead at a sizzling 7.2 percent annual rate in the July-September quarter, the best performance since early 1984.
Economists believe the economy in the current October-to-December quarter slowed but will still turn in a healthy pace of around 4 percent.
"While some slowdown from that elevated pace is to be expected, there is little doubt that the economy is now firmly on an upward path," said Mark Warshawsky, acting assistant secretary of Treasury's economic policy office.
The federal budget deficit hit $374.2 billion the 2003 budget year, which ended in September, representing a record amount of red ink in dollar terms. It was twice 2002's $158 billion deficit and surpassed the $290 billion record set in 1992.
The Bush administration has blamed the swelling deficits on the costs of the war in Iraq, fighting terrorism at home and until recently the lingering economic weakness from the 2001 recession. Democrats, however, say a major cause of the red ink has been President Bush's tax cuts and what they contend are bad economic policies.
Joshua Bolten, head of the president's Office of Management and Budget, has said the deficit for the current 2004 budget year, which began Oct. 1, could exceed $500 billion even with the strengthening economy.
Treasury said it expects to borrow $160 billion in the January to March quarter, which would set a new record. |
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