The CBO has released a new report titled “Federal Debt and the Legal Boundary.”
The report said that if the debt limit remained unchanged, there was a “significant risk” that at some point in the first two weeks of June there was a “significant risk” that the government would not be able to pay off all its debts.
“If the debt limit is not raised or suspended before the Treasury’s cash and extraordinary measures are exhausted, the government will delay payments for some activities, fail to fulfill its debt obligations, or both,” the report said. will have to do.” evaluation was made.
Treasury can finance government operations until at least the end of July
The report noted that if the Treasury’s cash and emergency measures are sufficient to finance the government by 15 June, the expected quarterly tax revenues and additional extraordinary measures could allow the government to continue financing its operations until at least the end of July.
Emphasizing that until the law to raise or suspend the debt limit is passed, the Treasury should use its cash balance and its current extraordinary measures to finance ongoing government activities, underlining that the Treasury can reduce its cash balance to extend the time it can continue to finance government operations without lending.
In the report, as of April 30, 316 billion dollars of cash and extraordinary measures were taken by the Treasury. under It has been reported that there is a usable borrowing capacity of $41 billion.
The government will need close to $2.2 trillion by the end of Fiscal Year 2023
The report stated that the financing need for May is estimated to be between $200 billion and $300 billion, and it is expected to be between $75 billion and $100 billion in June.
The report noted that the Treasury will make payments of approximately $25 billion on June 1 for social security and payments for military personnel and public employees.
It is also estimated that the US government will likely need between $1.9 trillion and $2.2 trillion to finance its operations by the end of fiscal year 2023, which will end on September 30.
Revision of budget deficit forecast for this year
On the other hand, in the other report published by the CBO, the budget estimates were revised.
In the report, it was stated that the budget deficit forecast for the 2023 fiscal year was increased by 130 billion dollars compared to the estimates in February, to 1.5 trillion dollars.