12:30 GMT05 August 2021
Listen Live
    US
    Get short URL
    780
    Subscribe

    WASHINGTON (Sputnik) - The US government will most likely run out of money between October and November unless the Treasury’s debt ceiling is raised, the bipartisan Congressional Budget Office (CBO) warned on Wednesday as Republicans lawmakers opposed to President Joe Biden were reported to be opposing a hike.

    “The Treasury’s cash balance and those extraordinary measures would enable it to continue financing the government’s activities for a while,” the CBO said in a report that examined the federal debt and statutory limit.  “However, if the debt limit remained unchanged, the ability to borrow using those measures would ultimately be exhausted, and the Treasury would probably run out of cash sometime in the first quarter of the next fiscal year (which begins on October 1, 2021), most likely in October or November.”

    The CBO said the timing and size of revenue collections and outlays over the coming months could differ noticeably from its projections. But it was clear about one thing though: the government would be unable to pay its obligations fully, and it would delay making payments for its activities, default on its debt obligations, or both.

    The caution came as Senate Minority Leader Mitch McConnell, who leads the Republican lawmakers opposed to Democrat President Biden, told the Punchbowl News portal that his party will not vote for a debt ceiling hike.

    "I can't imagine there will be a single Republican voting to raise the debt ceiling after what we've been experiencing," said McConnell who added that trillions in new debt accumulated by the Biden administration since it came to office in January has not resolved US economic woes.

    Democrat Senate Majority Leader Chuck Schumer, meanwhile, described McConnell’s remarks as "shameless, cynical and totally political," adding that the much of the current debt ceiling was accrued from the Trump administration’s borrowings during the height of the coronavirus crisis.

    "This debt is Trump debt," Schumer was quoted as saying by CNN. "It's Covid debt. Democrats joined three times during the Trump administration to do the responsible thing and the bottom line is that Leader McConnell should not be playing political games with the full faith and credit of the United States. Americans pay their debts."

    The CBO said as of June 30, the amount of outstanding debt subject to the statutory limit was $28.5 trillion, after an addition of $6.5 trillion borrowed by the Biden administration.

    Related:

    US Capitol Police Need Money to Keep Working After January 6 Riot Drains Budget, Senator Says
    US Fiscal 2021 Budget Deficit Hits Record $1.93Tln, Treasury Data Shows
    Biden to Propose $6Tln US Budget for 2022, Highest Deficit Since WW2, NYT Says
    Joe Biden's $6 Trillion Budget Revealed: From Countering China to 'Reimagining' US Economy
    Biden's Budget: US Entering New Stage of Great Power Rivalry, Risks Stretching Thin, Observers Say
    Tags:
    US, Congress, US Congress, US Congress, Congressional probe, congressional report, US Congressional Budget Office, US budget, budget, Debt, US debt
    Community standardsDiscussion