WASHINGTON, April 30 (Reuters) - The U.S. Treasury Department o n M onday scaled back its forecast for borrowing in the current quarter, mainly because lower anticipated spending is expected to leave it with more cash on hand at mid-year than previously expected.
The Treasury said it expects to issue $182 billion in net marketable debt in the April-June quarter, about $19 billion less than the estimate it offered in January. It expects to have $95 billion cash on hand when June ends rather than $90 billion it previously thought it would have.
Looking ahead to the July-September quarter, the Treasury said it expected to borrow $265 billion through the issue of net marketable debt and to have $95 billion on hand when the third quarter ends. By contrast, in the comparable third quarter of 2011, it borrowed $286 billion.
Over the first three calendar months of 2012, the Treasury issued $401 billion in debt and ended the quarter with a cash balance of $43 billion.
The Treasury will detail on Wednesday, at its quarterly refunding press conference, the mix of bills, notes and bonds it will offer to investors in order to meet second-quarter borrowing needs.
Budget deficits remain huge and the question of how to deal with them is certain to be a major issue when campaigning for November's presidential vote formally opens. The shortfall for fiscal 2011 that ended last Sept 30 was $1.3 trillion, a third straight year in which it exceeded $1 trillion.
There are many uncertainties that can still adversely affect borrowing requirements. A senior Treasury official noted that among the concerns were risks posed by high oil prices, ongoing debt strains in Europe and slowing global growth.