During the April-June quarter, the US Treasury Borrows 3 trillion in privately-held net marketable debt, assuming an end-of-June cash balance of USD 800 billion, said Mr.Trump.
The increase in privately-held net marketable borrowing is primarily driven by the impact of the COVID-19 outbreak, including expenditures from new legislation to assist individuals and businesses and changes to tax receipts, it said.
During the April-June quarter, the US Treasury expects to borrow USD 2.9 trillion in privately-held net marketable debt, assuming an end-of-June cash balance of USD 800 billion, an official statement said on Monday.
The latest spending packages are estimated to be worth about 14 percent of the country’s economy. The government has also extended the annual April 15 deadline for tax payments, adding to the cash crunch.
Effect of Covid-19
“The increase in privately-held net marketable borrowing is primarily driven by the impact of the COVID-19 outbreak. It includes expenditures from new legislation to assist individuals and businesses.
It changes to tax receipts, including the deferral of individual and business taxes from April-June until July, and an increase in the assumed end-of-June Treasury cash balance,” a source said.
Since US Treasury Borrows 3 trillion, the borrowing estimate is USD 3,055 billion higher than what was announced in February this year, the US Treasury said.
During the third quarter, Treasury in privately-held net marketable debt, assuming an end-of-September cash balance of USD 800 billion, the statement said.
During the first quarter, the Treasury borrowed USD 477 billion in privately-held net marketable debt and ended the quarter with a cash balance of USD 515 billion, it said.
In February, US Treasury Borrows 3 trillion estimated privately-held net marketable borrowing of USD 367 billion and assumed an end-of-March cash balance of USD 400 billion, the statement said.
In February, Treasury estimated privately-held net marketable borrowing of USD 367 billion and assumed an end-of-March cash balance of USD 400 billion, the statement said.
The USD 110 billion increase in borrowing resulted primarily from the higher end-of-quarter cash balance, it said.
The US Congressional Budget Office last month predicted the budget deficit would hit USD 3.7 trillion this year, while the national debt soared above 100 percent of the GDP.
