The U.S. Treasury Department lowered its
borrowing estimate for the current quarter by 18 percent to $444 billion, reflecting higher receipts and lower spending.
The Treasury reduced its net borrowing estimate for January through March by $97 billion from a projection of $541 billion three months ago. U.S. Treasury officials also see net borrowing of $200 billion in the second quarter. The estimates set the stage for the Treasury’s quarterly refunding announcement on Feb. 1.
An accelerating economy is boosting
tax revenue, helping the administration of President
Barack Obama control a
budget deficit it forecasts will narrow to $956 billion this fiscal year. Gross domestic product expanded at a 2.8 percent annual pace in the fourth quarter of last year, the most since the second quarter of 2010.
