Surplus ??
Doesn't sound like Congress is expecting a budget
surplus anytime soon ..
WASHINGTON, Dec 11 (Reuters) -
The U.S. Treasury Department on Tuesday formally asked the Congress to raise the limit on the public debt to $6.70 trillion from $5.95 trillion, potentially setting off a sticky political fight.
If approved, it's expected the $6.70 trillion cap would also have about the same life span - to the end of the 2003 budget year. The debt limit includes debt issued by Treasury to private investors as well as debt held in governmental trust funds, such as that for Social Security.
While the Treasury had previously hoped Congress would act by the Christmas holiday break, Davis made no mention of a deadline for action on Tuesday.
``We want to get it done and we'll work with Congress on the right timing,'' she said. In the letter, O'Neill had asked for ``prompt attention'' to the request.
In previous weeks, the Treasury had said only that a debt hike request was ``under consideration.'' The debt ceiling was last increased in 1997, as part of a wide-ranging budget deal. As of Monday, public debt subject to the Congressionally-set limit stood at $5.81 trillion.
In the letter, O'Neill blamed the deteriorating budget picture on the Sept. 11 attacks, the ensuing war on terrorism and ``resulting negative effects on the economy.''
Davis said the slowing economy, more than tax cuts or war-related spending, was responsible for most of the expected budget shortfalls ahead. Some Democrats have instead blamed tax cuts that are set to take effect in coming years for the shortfalls.
As recently as September 2000, Congress was mulling measures to lower the debt ceiling, as projections then called for years of budget surpluses.
Jim in Ct .. @deficit-spending.com |
