U.S. cuts borrowing estimates for final quarter of 2012

WASHINGTON Mon Oct 29, 2012 4:07pm EDT

WASHINGTON (Reuters) - The Treasury will not have to borrow as much in the final quarter of 2012 because the government spent less and took in higher revenues, the department said on Monday.

The U.S. Treasury said it cut its borrowing estimates for the October-December period to $288 billion -- $29 billion less than the department's previous estimate due to the higher receipts and lower outlays.

The smaller amount assumes that the Treasury will have $60 billion cash on hand at the end of December, the department said.

The Treasury's sale of AIG stock along with lower-than projected government spending pushed down borrowing needs for the third quarter ending in September, the department said.

For the July-September quarter, the Treasury said it issued $264 billion in net marketable debt, lower than its previous estimate of $276 billion.

For the first quarter of next year, the Treasury expects to issue $342 billion in net marketable debt, assuming the government has $30 billion cash on hand at the end of March, the department said.

(Reporting by Rachelle Younglai; Editing by Andrea Ricci)

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