Aug. 1 (Bloomberg) -- The U.S. Treasury Department reduced its estimate for government borrowing from July to September to $331 billion, reflecting lower spending.
The current quarter’s borrowing projection is $74 billion less than estimated three months ago, the department said in a statement today in Washington. The Treasury also projected borrowing of $285 billion from October through December. In the quarter that ended June 30, the Treasury borrowed $190 billion, compared with a previous estimate of $142 billion.
The plans, part of the Treasury’s scheduled quarterly borrowing, coincide with congressional voting today on raising the $14.3 trillion debt limit after months of debate. The House plans votes today and the Senate may follow suit to consider an agreement reached during a weekend of negotiations to raise the limit by at least $2.1 trillion and to cut government spending by $2.4 trillion or more.
The Treasury’s quarterly debt sales announcement is scheduled for Aug. 3, pending congressional action. The Treasury has said it will run out of borrowing authority tomorrow without congressional action.
In today’s net borrowing needs announcement, the Treasury said its forecasts assume a cash balance of $110 billion for Sept. 30 and a $100 billion cash balance for the end of December.
--With assistance from Ian Katz in Washington. Editors: Kevin Costelloe, Christopher Wellisz
To contact the reporters on this story: Vincent Del Giudice in Washington at firstname.lastname@example.org; Cheyenne Hopkins at email@example.com.
To contact the editor responsible for this story: Christopher Wellisz at firstname.lastname@example.org