(Finance) – The Congressional Budget Office (CBO), the US federal agency charged with providing economic data to Congress, predicts that if the debt ceiling remains unchanged, the government ability to borrow using extraordinary measures it will run out between July and September 2023. The exact date is uncertain because the timing and amount of revenue and disbursements in the coming months may differ from the CBO’s projections.
“If the debt limit is not raised or suspended before the exhaustion of the extraordinary measures, the government would not be able to fully honor its obligations – reads a report – As a result, the government should late payments for some assets, default on your debt obligations, or both“.
The CBO recalls that, on Dec. 16, 2021, lawmakers raised the debt limit by $2.5 trillion to a total of $31.4 trillion. On January 19, 2023, this limit was reached and the Treasury announced a “debt issuance suspension period” during which, according to current legislation, it can adopt “extraordinary measures” to borrow additional funds without exceeding the debt ceiling.
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