To Increase the Public Debt Limit : Before the Committee On Ways And Means On July 27, 1989 Jcx-39-89

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To Increase the Public Debt Limit : Before the Committee On Ways And Means On July 27, 1989 Jcx-39-89
United States. Congress. Joint Committee On Taxation
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280, and he has stated that this amount would suffice through fiscal year 1990.
The Senate Finance Committee, on July 25, 1989, approved a temporary increase in the public debt limit of $60 billion to $2,860 billion through October 31, 1989, because it does not believe that H.J. Res. 280 will be enacted in time to meet the needs of the Secretary of the Treasury to manage the Federal Government's fiscal affairs.
Accounting Cor the Amount of the Public Debt Treasury has requested a change in the
...method of accounting for the amount of outstanding debt which is subject to the debt limit.
In present law, the debt limit applies to the face amount of the securities issued by the Treasury, i.e., the sum that must be paid when the obligation reaches maturity; thus, a $10,000 bond which matures in 20 years is carried as a $10,000 debt from time of issuance, and the semi-monthly interest payments are cash outlays and are accounted for in the budget. This method of accounting applies to all Treasury debt except certain short-term debt, such as, bills sold at discount and savings bonds.


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