Assuming Congress passes the debt ceiling increase Tuesday, the Treasury announced Monday it plans to borrow $331 billion in the current quarter.
Reuters reports the Treasury is proceeding as if the debt ceiling increase will be passed and signed by President Barack Obama. The Treasury has said it would not be able to meet government obligations after Aug. 2, potentially leading to a default.
The Treasury said its borrowing estimate for the July-Sept. 2011 quarter is $74 billion lower than the estimate announced in May 2011, with adjustments made for lower outlays and cash balance.
The debt ceiling increase is part of the $2.1-trillion deficit-reduction plan agreed upon by the White House and Congressional leaders over the weekend.
According to Reuters, the debt ceiling will be increased in two stages. The first $900 billion segment of the debt ceiling is part of the deal being considered by Congress. The second increase, $1.5 trillion, will be considered when a second round of $1.5 trillion in cuts is approved later this year.