America to Borrow Half Trillion Dollars in 2012

The U.S. Treasury Department announced Monday that the federal government expected to borrow 644 billion U.S. dollars from the market to fund its operation in the first half of this year.

“During the January-March 2012 quarter, Treasury expects to issue 444 billion dollars in net marketable debt, assuming an end-of-March cash balance of 30 billion dollars. This borrowing estimate is 97 billion dollars lower than announced in October 2011,” the Treasury said in a statement.

The Treasury forecast that 200 billion dollars will be issued in net marketable debt during the April-June quarter this year, assuming an end-of-June cash balance of 90 billion dollars, noted the statement.

U.S. federal budget deficit hit almost 1.3 trillion dollars in fiscal year 2011 ending in September 2011.

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