February 6, 2003	Thursday	Zul Hijjah 4,1423

WASHINGTON, Feb 5: The US government will hit the $6.4 trillion national debt ceiling on or about February 20, the Treasury said on Wednesday.

If Congress does not take legislative action to raise the debt ceiling, Treasury said it will have to begin to use a number of stopgap devices — some costly — to manage the debt level.

These stopgap measures would only last to the beginning of April, Treasury said.

In December, Congress approved a Treasury request to increase the debt ceiling, which had been at $5.950 trillion.

The government, in theory, cannot issue more debt for operations if without congressional authority. It can however sometimes borrow from internal accounts.

President George W. Bush’s budget projections call for widening deficits that will require the government to issue more bonds.

The budget forecast record deficits of $304 billion in fiscal 2003, which began October 1 last year, and another $307 billion in fiscal 2004.

Separately, Assistant Treasury Secretary for financial markets Brian Roseboro said the Treasury plans to reintroduce a 3-year note at the next refunding in May to “diversify issuance.”

“Issuance of the three-year note will diminish somewhat Treasury’s borrowing in two-year notes and bills, while also providing additional capacity for fresh borrowing,” Roseboro said.—AFP