Monitoring Desk
WASHINGTON: The Congressional Budget Office has said the US Treasury Department will deplete its capacity to pay all its bills between July and September, unless the present $31.4 trillion cap on borrowing is suspended or raised, Western media reported on Wednesday.
US Government
According to a report that was issued alongside with annual budget outlook, CBO said that a federal debt default could take place before July if revenues lag expectations.
The CBO report said that if the debt limit is not suspended or raised before the unusual steps are exhausted, the US government would not be able to pay its obligations completely.
The report added that as a result, the US government would have to delay payments for several activities, default on debt obligations, or both.
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In another report, the CBO stated annual US budget shortfalls will average $2 trillion during 2024-33, a forecast likely to stoke Republican demands for more cuts on spending.
The serious analysis shows the complete impact of recent spending legislation like investments in clean energy and higher military spending, along with healthcare and pension. It suggests no change in tax and spending laws over the next ten years.
