Treasury predicts huge government borrowing needs

Posted on November 15, 2008 

Treasury predicts huge government borrowing needs

The financial rescue operation will force the federal government to borrow an unprecedented amount of money as the budget deficit climbs to record heights, a top Treasury Department official said Tuesday.

Anthony Ryan, Treasury’s acting undersecretary for domestic finance, said the administration back in July was forecasting that the deficit for the current budget year, which began on Oct. 1, would hit a record $482 billion. He said that forecast did not include all the government’s efforts since then to deal with the worst financial crisis since the 1930s.

“This year’s financing needs will be unprecedented,” with all the rescue programs now in place, Ryan said.

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