Treasury projects releases quarter 3 borrowing

Published:

On: Aug 2020

The US Treasury Department is planning to generate government borrowing of almost $947 bn in the recent July-September period, which would be considered as a record for the respective quarter but less from the all-time high record of $2.75 trillion in Q2 of 2020. The officials of the US Treasury Department recently declared that the United States government plans to borrow around $1.22 trillion in the period of the October –December.

Those figures contain $1 trillion in anticipated borrowing to fund another economic stimulus package, which is merged in discussions between American Democrats and Republicans. The authorities of US Treasury Department said that the dollar one trillion amount, roll over this quarter and the October-December phase is significant for a place holder. In the month of May, the House of Representatives finalized a $3.5 trillion measure which the Republican-driven Senate has declined to take up. Rather than, GOP senators have represented they esteem a smaller $1 trillion package.

The $947 billion in estimated borrowing for the recent quarter exceed the last mark for the phase of $530 billion which was set in 2008 when American government spent large amounts to deal with the 2008 fiscal problem. The Congressional Budget office is estimating that the deficiency for 2020 will rise to $3.7 trillion, far exceeding the last record shortfall of $1.4 trillion in 2009, which was the first time for the deficit for an individual year topped $1 trillion.