Treasury Pays Down Debt for First Time Since Dubya
Taxes, cuts give Treasury unexpected $35B
By Rob Quinn, Newser Staff
Posted Apr 30, 2013 12:59 AM CDT
Updated Apr 30, 2013 7:53 AM CDT
Does this clock go backwards?   (AP Photo/Seth Wenig)

(Newser) – Spending cuts and tax hikes have boosted the federal government's finances enough to actually pay off some debt for the first time since George W. Bush was president. The Treasury Department, which predicted earlier this year that it would end the second quarter another $103 billion deeper in debt, now says it will retire $35 billion in debt between April and June, reports the Wall Street Journal.

"The decrease in borrowing relates primarily to higher receipts, lower outlays, and changes in cash balance assumptions," the Treasury said in a statement. Retiring some debt for the first time since 2007 buys the government a little more time before it has to haggle over raising the $16.4 trillion borrowing limit, the Hill notes. But America is still a long way from having a balanced budget, which has only happened four times since 1970, when there was a surplus in the fiscal years from 1998 to 2001, the Atlanta Journal-Constitution notes.

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Treasury to Pay Down Debt for First Time Under Obama is...
5%
10%
3%
70%
1%
12%
Show results without voting
You Might Like
Comments
Showing 3 of 172 comments
Over the Road Steve
Apr 30, 2013 5:20 PM CDT
"Spending cuts..." So the sequester has produced this little dab of positive cash flow. Working as claimed, but still Barry fights it.
milo7453
Apr 30, 2013 4:24 PM CDT
Second quarter debt: $103 Billion - $35 Billion= $68 Billion NEW debt added. FYI: Taxpayers spend $220B per year paying off interest on the national debt.
flatnosepete
Apr 30, 2013 4:11 PM CDT
Sour grapes from the Tea Party morons on this page. Too bad that when Republicans are in office all we do is run up debts.