Statement of
James L. Blum
Deputy Director
Congressional Budget Office

Debt Subject to Limit

before the
Committee on Finance
United States Senate

July 28, 1995

Mr. Chairman, I am pleased to appear before this Committee to discuss the federal debt limit. In my statement today, I will give some background information on the debt limit, including its relation to the deficit and its impact on financial markets. I will also discuss the Congressional Budget Office's (CBO's) projections of when we will reach the current debt ceiling; describe the pertinent dates regarding federal borrowing, cash inflows, and cash outlays that debt watchers should be concerned with; and outline potential Treasury action to cope with a borrowing crisis.

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